Tonight President Obama will give the State of the Union Address to the country. Among various other tax changes one particular item caught my eye.
Trust Fund Loophole
So if your elder heir purchased a stock for $1 and at death is was worth $150, there would be no taxes on the new higher basis.
Sounds like a big tax increase, but multiple planning techniques come to mind that would help thwart these taxes, should it get passed.
If the Estate Tax, currently at over $5 million per person is left alone, we can navigate the loss of a step up in basis.
Have a Great Day!
John A. Kvale CFA, CFP
PS Pretty excited to watch…. ya ya .. nerds!