As we look ahead to 2021 what do we need to know regarding estate planning? Depending on the outcome of the election, certain tax laws may change, which means how you plan for your estate could also change. Right now, the federal estate, gift and generation-skipping transfer tax exemptions are $11,580,000 for individuals and $23,160,000 for married couples with a tax rate of 40%.  These exemptions are slated to increase in 2025. However, the tax rate could increase to 55% and a lower exemption as soon as 2021. So, what does this mean? It means, in anticipation of these changes you may want to maximize the benefit of using the current higher exemptions and get your estate in order by the end of 2020 as some say the exemption could go as low as $5,000,000.  Minnesota residents also need to consider the Minnesota estate tax which currently is at $3,000,000 per person and you cannot share $6,000,000 per couple.  If there isn’t proper planning the initial $3,000,000 exemption when the first spouse passes away may be lost.  For more information:  https://www.jdsupra.com/legalnews/looking-ahead-to-2021-with-a-focus-on-61595/
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