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Recommended Review of Estate Plan Due to Tax Law Changes

As a result of the dramatic changes in the federal tax laws created by the 2017 Tax Act, it is important that consideration be given to the comparative benefits of excluding property from a taxable estate to avoid estate tax as opposed to receiving an income tax basis step-up for the property and including it in the taxable estate. 

The benefits of basis step-up include additional depreciation that becomes available and the reduction of gain on the sale of property. In the past, these benefits were outweighed by the reduction of estate tax that was accomplished by removing property from a taxable estate. 

Now it is possible that the very reverse may be true; i.e., the benefits could be greater if property is subject to estate tax but obtains a step-up in income tax basis. 

Every situation is different and a review of an individual’s estate and tax plan is needed to determine the best option. 

© 2021 Wilson ElserNational Law Review, Volume IX, Number 72
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About this Author

Sheila Tarabour Estate Planning Attorney
Partner

Sheila Tarabour, formerly of Lampf, Lipkind, Prupis & Petigrow, practices in the areas of estate planning and administration, taxation, elder law and special needs planning. Sheila provides services with great enthusiasm and is skilled in communicating complex and sensitive matters to her clients. 

Areas of Focus

Estate Planning and Administration
Sheila focuses on advising individuals and families in their personal, philanthropic and business planning needs, including complex estate planning (gift, estate, generation-skipping transfer and income...

973.735.5761
William Lipkind Tax Attorney
Partner

William Lipkind, chair of Wilson Elser’s Tax Planning & Controversies practice, concentrates his practice in the areas of wealth preservation, asset protection, and state and federal income taxation. He is experienced in the laws, regulations and nuances surrounding gift and estate taxation and tax controversies, and he counsels closely held businesses and their owners on optimal tax structures, internal governance, and mergers and acquisitions. Bill is valued for his sensitivity to estate planning issues, counseling corporate entities as well as high-net-worth individuals on asset...

973.735.5749
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