Political season is in full swing with the next presidential election only a year away. With every political season, candidates are talking about taxes. What is their plan? Should the federal government increase or cut taxes? Should lawmakers work to reform the tax code itself?
The questions are always there, and voters expect the candidates to provide an answer so that they can determine which candidate, if any, is going to get their vote. The most recent tax plan discussion surrounds Donald Trump, one of the GOP candidates. If elected, he says many taxes are on the chopping block, including the estate tax.
When he shared his plan on the public pulpit, Trump said that he wanted to make the tax code simple. He promised to reduce taxes for businesses and many families, eliminating federal taxes altogether for millions of low-income individuals and families.
For his plan to be successful, he said that he would also need to remove several taxes that he says overcomplicate the system and make it difficult. Yes, he said that this includes the estate tax, which he and many others refer to as the “death tax” due to the timing in which people are taxed.
There is no way to tell who will take the seat in the White House next, but that does not change the way in which taxpayers should operate in regards to their estate plans. Everyone should have an estate plan that is tailored to their needs and circumstances.
In addition, individuals should get advice from an attorney who can help them create a plan that prepares for potential changes in the law. Last, individuals need to make sure to update their estate plan periodically.