Tannenbaum Helpern Syracuse & Hirschtritt, LLP
About Us Careers Contact Us Search
Home Practice Areas Industries Case Results Attorneys Publications Events Press Room

Trump and the Estate Tax: What We Know

The foregoing outlines the estate tax policies proposed by Donald Trump as part of his planned overhaul of general tax policies. While it remains to be seen to what extent an overhaul can be achieved, this is what is known about where president‐elect Trump stands today:

Estate Tax

Under current law, the 2017 federal estate tax exemption will be $5.49M (adjusted yearly for inflation). For assets above the exemption, the top federal tax rate is 40%. Many states have additional estate tax rates at various levels.

Gift/GST Tax

These have recently been coupled with the estate tax, so that both the gift and generation skipping tax (“GST”) exemptions are also capped at $5.49M for 2017.

Trump Proposal:

Eliminate all estate, gift and GST taxes.

Portability

Under current law, any unused federal estate tax exemption of a deceased spouse is added to the available exemption of the surviving spouse if proper election is made on deceased spouse’s estate tax return.

Trump Proposal:

Elimination of estate tax voids portability.

Annual Gift Exclusion

Under current law, the annual gift exclusion is $14,000.

Trump Proposal:

Elimination of estate, gift and GST taxes voids need for annual gift exclusion.

Basis of Assets Acquired by Inheritance

Current: Upon death, beneficiaries obtain stepped‐up basis to fair market value.

Trump Proposal:

Eliminate stepped‐up basis. Capital gains to be taxed upon death without a step‐up in basis. However, allows for $10M exemption. For transfers above the $10M mark, the proposal contemplates retaining the applicable 20% capital gains rate. Trump has further proposed a repeal of the 3.8% net investment income tax.


KEY TAKE-AWAYS

Consensus is that there will be a major shift in the federal estate tax, but it is inaccurate to say that death taxes will be fully extinguished. Preserving the capital gains tax (at the current 20%), while invalidating a “step‐up” in basis at death is still a tax, albeit one with a practical effect of less than half of the current federal estate tax of 40%.

For more information on the topic discussed, contact Yolanda Kanes at kanes@thsh.com or at 212-508-6721.

To view our recent publications, visit us on online at www.thsh.com and go to Publications. To subscribe for the newsletter, send email to marketing@thsh.com.


About Tannenbaum Helpern Syracuse & Hirschtritt LLP

Since 1978, Tannenbaum Helpern Syracuse & Hirschtritt LLP has combined a powerful mix of insight, creativity, industry knowledge, senior talent and transaction expertise to successfully guide clients through periods of challenge and opportunity. Our mission is to deliver the highest quality legal services in a practical and efficient manner, bringing to bear the judgment, common sense and expertise of well trained, business minded lawyers. Through our commitment to service and successful results, Tannenbaum Helpern continues to earn the loyalty of our clients and a reputation for excellence. For more information, visit www.thsh.com. Follow us on LinkedIn and Twitter: @THSHLAW.

Publications
BulletPoint
GlobalNote
Business Litigation Bulletin
Employment Notes
Note from the Real Estate Group
THSH E-Alert
Other Publications
Inclement Weather Policy
Other Publications Archive
President Obama Seeks to Broaden Overtime Protections for Employees
Privacy regulation in the United States
The Broad Scope of Franchise Laws: Traps for the Distribution Contract Drafter
Managing Distribution: How to Develop a Corporate Legal Compliance Program
Internet Distribution, E-Commerce and Other Computer Related Issues
Distribution Contracts
What Impact Will FATCA Have on Offshore Hedge Funds and How Should Such Funds Prepare for FATCA Compliance?
The American Taxpayer Relief Act of 2012: What It Means to You
Privilege and the In-House Counsel: Protecting Your Communications Through Proper Registration and Careful Understanding
Are your digital communications protected by attorney-client privilege and what if privileged information is disclosed?
THSH Private Equity Roundtable Summary
Post Grant Review Under the America Invents Act
Bench-Bar Conversation with Justice Carolyn E. Demarest
Proposed Changes Set to Alter Estate and Gift Tax Structure in New York: Time to Make a Gift?
New York City Paid Sick Leave – What Staffing Firms Need to Know
New York State Estate and Gift Tax: The Hidden Costs of Tax Reform
Assessing Never-Examined SEC-Registered Investment Advisers: An SEC NEP Priority
Changes to NY Minimum Wage
NLRB Strikes Again
Bench-Bar Conversations with Justice Elizabeth Emerson
Attorney Professionalism Forum: What should an attorney do when the client wants to present false information and what happens
Reducing the risk of violating competition law
NY Rings in 2015 with a Minimum Wage Increase
Distribution & Agency 2015 - Q&A on the distribution of goods and services in 17 jurisdictions worldwide
Fair Chance Act
Sales Taxes on Construction Projects
Forget Big Brother, What Happens When it’s Opposing Counsel is Doing the Recording?
E-Discovery Identification & Preservation Guide For Lawyers (Version 2.0)
On the Horizon: What to do before selling your staffing business
Striking the Right Encryption Balance after FBI, Apple Fracas
Delaware Court Reiterates Need for Unambiguous Non-Reliance Provisions in M&A Agreements
Finalizing a Divorce? Wait, Just One More Thing …
IRS Proposed Changes to IRC 2704 Affect Business Succession and Estate Planning Valuation Discounts
Trump and the Estate Tax: What We Know
Actual-Intent Fraudulent Transfers and the Crime/Fraud Exception
Proposed NYS DFS Cybersecurity Regulations to Significantly Impact FS Companies
New Guidance for Human Resource Professionals to Avoid Antitrust Violations
Merger and Scènes à Faire: Two Defenses to Substantial Similarity in Copyright Litigation
What’s New in the Revised New York State Proposed Cybersecurity Regulation?
The Law of Insider Trading: A Primer For Investment Managers
Recent Cyber Attack On Law Firms Serves As A Wake-Up Call For Professional Services Firms
The Ambac Decision and the Future of the Common Interest Privilege Under the New York Law
Overview of Data Privacy and Cybersecurity Regulatory Landscape for Investment Advisers and Other Financial Services Companies
Global Ransomware Attack: Basic Security Measures Every Business Should Adopt
Distribution & Agency 2017- Q&A on the distribution of goods and services in 17 jurisdictions worldwide
New Copyright of Resource: Copyright Protection
Attorney Professionalism Forum: Using Per Diem Attorneys Plus An Addendum To The June Forum On Cybersecurity Ethics
Congressional Republicans Propose Sweeping Tax Reform
Attorney Professionalism Forum: Attorney-Client Confidentiality vs. the Customs Agent: Who Wins?
Attorney Professionalism Forum: Confidentiality Issues When Clients Don’t Tell The Truth
Rules for Equity Crowdfunding Effective May 16, 2016
Estate Planning Under Comprehensive Tax Reform
Attorney Professionalism Forum: Attorney Websites, Branding and Using Social Media
Attorney Professionalism Forum: Attorney Advertising And Self Promotion
NY Appellate Court Shifts Balance of Power in Commercial Real Estate Leases: Upholds Yellowstone Injunction Waiver
Recent Developments in Neighbor Litigation
Attorney Professionalism Forum: Communicating With Clients With Diminished Capacity
Attorney Professionalism Forum: Litigation Financing
Groundbreaking bipartisan Congressional Legislation could pave the way to fully legalized Marijuana
Conditions Precedents in Construction Contracts
Distribution & Agency 2018 - Q&A on the distribution of goods and services in 18 jurisdictions worldwide
Data Privacy Alert: California Consumer Privacy Act of 2018 Just Enacted
Attorney Professionalism Forum: Litigation Financing Confidentiality and Marijuana Ethics For Lawyers
U.S. Markets See First Cannabis IPO
NYS Department of Financial Services Issues Guidance to Banks on Servicing the Marijuana Industry
THSH Cyber Alert: GoDaddy the latest to leave S3 Bucket Unsecured
Legalized Adult-Use Marijuana Coming to New York?
NYS and NYC Sexual Harassment Prevention Laws
Are Your Website and Privacy Policy GDPR Compliant?
Attorney Professionalism Forum: Ethics and Best Practices For Law School Clinics
Beware of the AIA Form of Performance Bond
Attorney Professionalism Forum: Referral Fees and Using a Client as an Expert
Anecdotes from World’s Largest B2B Cannabis Conference
Attorney Professionalism Forum: Restrictive Covenants In Agreements Employing Lawyers
Turndown Service with that Hack: Marriott Hotels Announce Massive Data Breach
Attorney Professionalism Forum: Handling Confidential Client Information
Groundbreaking 2018 Farm Bill Portends Huge Changes to U.S. Cannabis and Hemp Industries
Attorney Professionalism Forum: The Challenges of Litigating Against Pro Se Parties
Articles By Topic
HRMinute
New York Law Journal
Attorney Professionalism Forum
Join Our Mailing List
Publication
Like us on FaceBook Follow us on Twitter Get LinkedIn with us Pin It! Email Us Print this Page

Sitemap |Terms of Use | Privacy | Attorney Advertising

Tannenbaum Helpern Syracuse & Hirschtritt LLP provides legal advice only to individuals or entities with which it has established an attorney-client relationship and such advice is based on the particular facts and circumstances of each matter. Contacting us through this site, or otherwise, will not establish an attorney-client relationship with us. Any e-mail or other communication sent to THSH or its lawyers through this site will not be treated as subject to the attorney-client privilege or as otherwise confidential and you should not include any confidential information in any such communication.