From one year to the next, what happens to the estate tax threshold, which is set today at $5.49 million per person, is anybody’s guess. And under the new president Trump, all bets are off as to the decisions and changes possible under his nontraditional presidency. Trump has explained that he wants to eliminate the tax but as no firm announcements have been made, many financial advisors are not really sure how to advise their clients.
Many Planners Believe The Estate Tax Is On The Chopping Block & That It Is Only A Matter Of Time Before It Is Formally Dissolved
Only once in the country’s history has the estate tax been eliminated and that was more than 100 years ago. With more than 12,000 estate tax returns filed in 2015, the tax yielded approximately $17 billion in revenue that year. It is likely the tax will be reviewed under a comprehensive tax policy when the budget process for the country begins this summer.