We continue to monitor the election polling and its potential impact on the estate and gift tax laws. If the democratic party wins the Presidency and control of Congress, it is possible that (a) the planned reduction in the exemption amounts is accelerated, to as low as $3,500,000 per person, (b) the tax rate is increased from 40% and (c) the step-up in basis at death rules are eliminated. These changes could have adverse effect on the amount of money your beneficiaries receive at death.
If your estate is potentially taxable, we should start talking about strategies to minimize the estate tax impact to your beneficiaries. My favorite tools in this environment are grantor retained annuity trusts (GRATS), spousal limited access trusts (SLATS), gifts to charities and intra-family loans.
