Can Estate Tax Be Grandfathered?
My parents have a ranch. We understand now that the tax exemption is about $5 million per individual. If they set up a living trust this year, then that exemption is lowered per individual in the future, will they be "grandfathered" in at the $5 million? Will their heirs be taxed upon their deaths?Answer:
Hi, I assume you're talking about the estate tax exemption? If so, it's anyone's guess what will happen although I doubt people would be grandfathered. More likely if and when it changes it'll apply to whoever passes away after that date. The estate would be taxed on amounts above whatever the new exemption level is. But, of course, it'll just depend on what the new estate tax law says.
Does that answer your question?
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