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President Obama’s Proposed Tax Changes for Estates, Elder Law Attorney, Woodstock, GA


The last proposed budget of Barack Obama’s presidency contains several changes to the tax codes important to estate planning.

President Obama has submitted his last budget proposal to Congress. It contains many of the same changes to the tax code he has previously attempted to implement. While there appears to be little chance the Republican controlled House of Representatives will agree to the changes, it is important to know what has been proposed. Recently, the National Law Review listed the changes that would affect estate planning in “Any Estate Tax Changes on the Horizon?

The proposals include:

  • Reducing the estate tax exemption from the current $5 million per individual to $3.5 million and raising the rate from the current 40% to 45%.
  • Making it more difficult to use advanced estate planning techniques such as GRATS, defective trusts and gift/sale agreements to get around the estate tax.
  • Capping Crummey gifting at $50,000 per year instead of the current unlimited amount.
  • Doing away with the step-up basis for inherited capital gains.

It does not appear that the House of Representatives will even debate President Obama’s budget proposals this year, so these tax changes are currently unlikely. However, there is always the possibility that the President and congressional leadership will need to compromise to get a budget passed.

In this election year legislators want to settle on a budget as early as possible so they can focus on their campaigns. It remains to be seen whether their desire to finish quickly will lead them to compromise on taxes, so interested parties should pay attention.

Reference: National Law Review (Feb. 26, 2016) “Any Estate Tax Changes on the Horizon?

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“On the threshold of retirement, we finally decided to quit thinking we could self-prepare the requisite documents. We had previously had only a very simple will. We needed the necessary legal (including updated will) & health care docs but didn’t want to deal with the time & complication of legalese. Cindy made the process relatively painless. She took the time to explain and answer questions without trying to upsell services. We were done in 2 meetings plus the reading of emailed drafts. In addition to preparing the documents, Nelson Eldercare will be there when our adult children need advice on executing the plans we’ve put in place.So glad it’s behind us and would recommend Cindy and her helpful staff.”

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Cindy and her company treat their clients like family. Nelson’s offers clear, direct, and honest guidance in planning for your families security and future. No one wants to actively sit down and make these decisions, but Nelson’s makes this process seamless. I was so impressed with their willingness to answer all questions big or small. So glad I made the decision have them help my mom and dad and now me. You can’t go wrong with Nelson’s Elder Care Law.

- Hope

The very best elder law attorney and staff anyone could ever ask for! I have referred a number of clients to Cindy and she never disappoints. She is kind, caring, and extremely thorough in making sure everything is completed as it should be. I highly recommend Cindy for anyone needing lawyer services; she truly goes above and beyond for every client she helps and has had a huge impact in so many peoples’ lives. Thank you, Cindy and staff, for everything that you do- I’m so glad to know you!

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I heard Cindy’s presentation at a Senior Luncheon at my church, and was very impressed. She helped my daughter and me understand many aspects of elder law. Josh has also been very helpful in my planning to enter an independent living situation . I have told many friends about them.

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Cindy and the Nelson Elder Care Law team are trustworthy and helpful. They are the experts in elder care law. At Leaf Cremation, we entrust our families to the care of the Nelson team when their services are needed.

- Pierce