While I am going to write about this in more detail in an upcoming newsletter... I think it important to also 'double up' here.
As you all know I am no big fan of either of the main candidates...but I will hold my nose and vote for Hillary. I may explain in another post shortly.
But that said, I am deeply concerned about her desire to change the Estate Tax program for the very, very worse for small business owners. Currently, the threshold of zero taxes is in the $5 Million range. Under her plan it would fall to the $3 Million range, at which point the tax would be 40%.
I just helped a client sell his publishing company for $2.2 Million. he has a house paid for, and some savings. Even after paying taxes on his sale, his estate is going to be over $3 Million. Without some serious thought, anything over, which in his case today would be about $600K... would cost his family almost a quarter million dollars.
And the only reason he would even be aware would be his sale of his company.
There are thousands, tens of thousands, of business owners who fall into this category. A business worth 1-2Million, a house, some savings, IRAs, a second home maybe... and all of a sudden, after the IRS values the business after the owner's death... an ordinary family is now into $4 million in assets... on which, under Hillary's plan, they would have to find and pay up $400,000.!
Just a reminder that anything can happen and you MUST stay current and focused on protecting your assets and tax structure at all times.
Let me know if you have any questions.