Brenie's estate tax plan
Cuts personal exemption to $7M for a couple from the current $10.86M.
I don't have a problem with it but agree 100% with Don.
100% free passage to surviving spouse but no change in basis. Then estates should be taxed on the basis of capital gains, and capital gains should be taxed at the regular rate with inflation indexing.
BTW, observed with some amusement in 2012 when Obama was re-elected and people were in a panic about the decrease in the exemption that didn't happen.
I discussed it with a friend who does accounting and financial planning for a number of large farmers. He said that, yeah, but most of the old codgers should have passed some of those assets to their kids a long time ago. Now they have a problem because the value of their estates tripled.
If anybody is really cares about Family Farms then they can add a provision like Special Use that can reduce land valuation for a farming offspring.
If I'm not an offspring but my Uncle leaves me $20M worth of land I guess I'll just deal with.
Re: Brenie's estate tax plan
My fatther died in 1980 and my mother died this last march/ Mother had life estate on my father's half of the farm. Now the children will have to pay capital gains on the increase in value on fathers half. No tax liability on mothers half even though her half was valued much higher than dads..