By Tom Wheelwright
President Biden’s Build Back Better plan has an abundance of tax changes that, if implemented, could significantly decrease the amount of wealth that you can leave to your family. These potential changes are a great reason to begin reevaluating your estate planning now before it’s too late.
What’s at Stake?
So, why is estate planning so critical at this moment? Biden has proposed that the estate and gift tax exemption essentially be cut in half. Currently, the exclusion is $11.7 million, meaning that if your estate is under that amount, you won’t owe the estate and gift tax and anything over that amount will be taxed at 40 percent. If the new proposal is passed, the exemption would be lowered to $5 million with the tax being implemented on all deaths and transfers.
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