The 2020 presidential elections will have an impact on estate planning, taxes and charitable giving. There are updates to your estate plan that you can make in 2020 to lower your taxes and increase your tax exemptions.
The U.S. Bar Association has issued a statement on the impact of the 2020 election on estate planning:
The Democrats have a smaller majority in the House of Representatives, and the Senate will either be controlled by the Republicans or evenly divided with the Vice President breaking any ties. This likely makes the enactment of major tax law changes more difficult.
President-elect Biden’s presidential campaign advocated changes to the tax code and higher taxes on high-income households and corporations, proposed changes to the way wealthy families transfer assets to heirs.
Federal Estate Tax Exemptions
In 2017 President Trump doubled the federal estate tax exemptions, and in 2020 increased them to $11,580,000 per individual and $23,160,000 for married couples. President-elect Biden has indicated he may lower the estate tax exemption. To lower your federal estate tax exemptions you may consider updating your estate plan:
• Many people want to leave money to a charity in their will, but also need to reduce the taxes on their assets. Transfer assets to an irrevocable Charitable Remainder Trust and take a tax deduction.
• Federal and Illinois tax laws provide an opportunity to transfer significant amounts of wealth free of any federal gift, estate and generation-skipping transfer (GST) taxes.
• Transfer assets to an irrevocable trust to avoid up to 40% estate death tax, and recognize the tax gain at the time of transfer and shift any future appreciation from your current assets.
Do you have questions about estate planning? Our experienced estate planning lawyers in Lombard, Illinois can advise you on the best options to protect your assets and loved ones. To talk to an estate planning attorney contact the Estate & Probate Legal Group at 630-687-9100.
We provide legal services in Cook, DuPage, Kane, Lake, and Will counties.