Why you should love the estate tax
Just say “NO” to estate tax repeal. Most of us will not pay it anyway and you could lose a large benefit that you have today (keep reading). Current law is set to sunset after 2025 which means Congress will likely not enact legislation until that date approaches.
A limited few facts about the estate tax:
- In 2019, you owe zero estate tax if your estate is under $11.4 million, or $22.8 million if married (and it’s indexed for inflation thru 2025).
- Only 1 in 1,000 estates are higher than that.
- When you inherit property (other than retirement accounts not discussed here) your tax basis, or cost basis, is the value of the property at
date of death.
Think about that last point. If your parents leave you a million dollars you can sell anything you don’t want and you are left with a million dollars
Just say “NO” to estate tax repeal.
It also is a huge incentive for billionaires to be charitable.