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How Estate Tax Changes Could Affect You and Your Family

Updated: May 13

If you’ve heard about the newly proposed legislation regarding estate tax changes, but you don’t know how (or even if) it will affect you or your family, then keep reading to learn some of the basic parts you should know.


Under current law, the estate tax exemption will be reduced from $11.7 million to $5.5 million on January 1, 2026. However, recent proposals and discussions from the new administration have indicated the estate tax exemption may be reduced to $3.5 million prior to that date.


It’s important to remember that your federal taxable estate includes:

  • your bank accounts

  • the value of your home and other assets

  • your retirement accounts

  • the face value of life insurance owned or controlled by you


If you add all of that up, you may find yourself above the new exemption amount, and it will affect your ability to transfer your wealth to your loved ones free of the federal estate tax.





Another concern is the proposed capital gains tax on assets transferred at death from you to your loved ones. Currently, such transfers are free of capital gains taxation. This proposal not only provides an additional tax at death, but the tax rate on capital gains is also projected to rise from 20% to 39.6%.

No one knows for sure what the final proposal will be, however any changes enacted will most likely be effective on January 1, 2022.


This year will prove to be a critical time for you to consider how your estate may be affected and meet with us to plan accordingly. We have planning strategies to help you preserve your wealth for future generations.




We will continue to monitor this legislation as it passes through Congress and keep you informed of the items included in the final bill.

Our goal is to keep you informed of the latest estate planning developments and continue to help you and your loved ones plan for a bright tomorrow.



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