With Republican President Trump in the White House and a Republican majority in Congress, the stars are aligned to fast-track Republican-based agendas. High on the priority list is the repeal of the federal estate tax. According to his October 2016, ‘First 100 Days’ speech, President Trump even puts the estate tax repeal at the top of his congressional docket. However, the new administration has yet to articulate the details of the proposed repeal and, although the circumstances are favorable, Congress is a fickle friend, leaving the future of such repeal impossible to predict. Some Republicans desire an immediate repeal of the estate tax while others opt for a gradual phase-out.

Thinking long-term, the permanency of such repeal during future presidential terms remains unclear. Gift and generation-skipping taxes could be eliminated as well or, more likely, retained to offset loss of federal income. The provision that may have the biggest impact on taxpayers is a possible rescission of the adjustment at death for the decedent’s capital assets (commonly known as a step-up in basis).

To read more about how to prepare for potential changes, click here.