The press is now exploring the impact of the various changes to the tax code proposed by Presidential candidate Donald Trump during his campaign and what impact they might have on dynastic wealth now that he is President-elect in "Trump's Changes to the Tax Codes May Encourage Dynastic Wealth."
The biggest change Trump has proposed is to eliminate the estate tax, which would obviously make it easier to keep money in the family. He has also proposed changes to how inherited capital gains would be taxed. It appears that no capital gains would ever be taxed as part of the estate until the asset was sold.
This includes interests in family businesses. That would also make it easier to keep inherited wealth in the family. Further, Trump has indicated that he would limit charitable deductions, which has some worried that less money will go to charity. Taxes such as the gift tax and the generation-skipping tax could also be repealed.
Of course, until Trump proposes legislative action we cannot be certain what he will do and whether it is likely Congress will agree with the plans.
An estate planning attorney can advise you on creating an estate plan under the present tax codes as well as keep the plan up to date with any changes in the future.
Reference: New York Times (Nov. 11, 2016) "Trump's Changes to the Tax Codes May Encourage Dynastic Wealth."
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