by Mary Lago, CFP®, CTFA
Executive Vice President
Wealth Management Chair
Tax policy is being proposed and revised at a furious pace in Washington. Not knowing if, when and in what form the proposals might turn into law, it may be tempting to ignore the process and wait for the final outcome.
We often say, “The tax code favors the well informed.” There are a number of opportunities that are amplified today due to low interest rates and current tax policy. The American Families Plan proposal includes significant tax changes including:
Increasing the top capital gains and other income tax rates to 43.4%
An indirect increase in effective estate taxes with the taxation of unrealized gain at death ($1 million/per person exemption in addition to the personal residence exemption)
The current proposal does not include reducing the federal lifetime estate tax exemption, but the current $11.7 million exemption is scheduled to drop to $5 million (adjusted for inflation) in 2026
If you like to be opportunistic, we encourage you to read a recent article in Financial Advisor Magazine by Joseph B. Darby, III, Esq. We look forward to collaborating with you and your tax and legal advisors about how these strategies may benefit you.
Ferguson Wellman and West Bearing do not provide tax, legal, insurance or medical advice. This material has been prepared for general educational and informational purposes only and not as a substitute for qualified counsel. You should consult qualified professionals to understand how this information may, or may not, apply specifically to you.