Biden win worries the wealthy

Biden has proposed undoing changes made to the estate tax basic exclusion amount, which was essentially doubled to $11.58 million in 2020, or $23.16 million if married, under the Tax Cuts and Jobs Act. Assets exceeding the exclusion threshold are subject to a rate as high as 40%, which means people would be able to transfer fewer assets without triggering the tax under Biden’s plan. Biden would also do away with step-up in basis, which means unrealized capital gains would be taxed at death. The provision of the Tax Cuts and Jobs Act is scheduled to expire in 2025, but financial advisers have been working with clients on tax planning strategies in case that timeline is accelerated.