August 20, 2019

August 20, 2019

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August 19, 2019

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House Votes to Repeal Estate Tax - But Passage into Law Remains Unlikely

On April 16, 2015, the House of Representatives voted 240-179 to repeal the estate tax. The vote was mostly along party lines. The Death Tax Repeal Act (H.R. 1105) approved by the House would not change the step-up in basis rules, which eliminate capital gain in appreciated assets at death under current law. This is different than most past repeal proposals, which in some manner eliminated or modified the stepped-up basis rule as a way to offset the revenue loss from estate tax repeal. With no revenue offset to the budget impact in this Act, the estimated 10 year cost of repeal is $269 billion.

The only thing the passage of this legislation should portend is the beginning in earnest of positioning for the 2016 elections. It is unclear whether the Senate will even take up the legislation, and the White House has indicated the president will veto any bill presented to him.

© 2019 Schiff Hardin LLP

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About this Author

Thomas Abendroth, Schiff Hardin, estate planning attorney, wealth transfer strategy lawyer, trusts legal counsel
Partner

Tom Abendroth combines the precision of a “numbers guy” with the insight and understanding of a trusted confidant. Deep knowledge of the tax law and estate planning techniques is critical for any private client's attorney. Tom pairs that knowledge with a strong sense of empathy that allows him to quickly discern the sensitive family issues that a client needs to address in his or her estate plan.

Tom counsels clients on the full range of wealth transfer planning, seamlessly melding the tax implications of estate planning with the unique...

312-258-5501
William R. Franzen, Schiff Hardin, Chicago, Succession Planning Lawyer
Counsel

William R. Franzen has extensive experience counseling high net worth clients on family business succession and tax planning, estate planning, multigenerational wealth transfer, international tax planning, family office structure and administration, executive compensation planning and charitable organization formation and administration matters.

Mr. Franzen has written extensively on trust and estate planning issues for Illinois State Bar Association, Illinois Institute for Continuing Legal Education (IICLE) and American Bar Association publications and has also given numerous presentations to family offices, investment advisers and business groups regarding current estate and tax planning matters.

312.258.5568
Harmon Brown, Estate Planning law, Trust Attorney, Schiff Hardin, tax exempt organization legal counsel, business succession lawyer
Partner

Harmon is an estate planner who has shepherded generations of families through the wealth planning labyrinthine. He is unflustered by the complicated family dynamics often associated with these matters and finds innovative ways to mitigate them in a timely and tactful manner. 

Harmon’s nationwide practice has helped clients plan for the transfer of their assets in a tax efficient and practical way. He has participated in a multitude of family meetings to develop, design and implement family estate planning. Harmon’s goal is to provide clients...

312-258-5690