September 29, 2020

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September 29, 2020

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September 28, 2020

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Death and Taxes: House Bill Eliminates "Death" Tax in 2024

On November 2, 2017, the U.S. House of Representatives' Ways and Means Committee released its proposal for tax reform via the Tax Cuts and Jobs Act. The House's draft legislation contains a number of provisions that, if enacted, would significantly change the wealth transfer landscape, including the total repeal of the estate and generation-skipping transfer taxes as of January 1, 2024.  

Under the proposal, commencing on January 1, 2018, the individual lifetime gift and estate tax exemption amount will be doubled to $10 million ($20 million for married couples), indexed for inflation—$11.2 million per person in 2018 ($22.4 million for married couples). This increase in the exemption amount also applies to the generation-skipping transfer tax. 

The draft legislation calls for a total repeal of the estate and generation-skipping transfer taxes as of January 1, 2024, while preserving the ability of beneficiaries to obtain a basis adjustment as to inherited property. Although the gift tax is set to remain in place, a reduction in the rate from 40% to 35% is provided for. Similarly, the annual exclusion—scheduled to increase to $15,000 per individual in 2018 ($30,000 for married couples who elect to split their gifts)—looks certain to survive.

© 2020 Jones Walker LLPNational Law Review, Volume VII, Number 310

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Jones Walker's Estate Planning & Administration practice provides a variety of estate planning and personal planning services for individuals and families, including wills, lifetime trusts, and marital property agreements. Our attorneys administer decedents' estates, both domiciliary and ancillary, and prepare estate and gift tax returns.

Our attorneys, several of whom are members of the American College of Trust and Estate Counsel, are experienced in structuring estate plans for estates of all sizes, including estates of business owners, as...

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