Wealthy Americans are scrambling to change their estate plans before year-end, worried that Democrat Joe Biden will win the U.S. presidential election, say financial advisers to the moneyed set. The biggest concern is that the White House and Congress could get swept up in a “Blue Wave” of Democratic wins that give Biden the power to propose and pass a sweeping set of tax reforms.
Wealthy people are especially nervous that an exemption allowing individuals to leave up to $11.58 million to heirs, free of estate or gift taxes, could be cut before it expires in 2025. Democrats want to raise estate taxes to the “historical norm,” according to the party’s platform. That could mean slashing the exemption to $5.49 million, the figure in place before Trump signed a sweeping tax bill that included benefits for corporations and wealthy Americans in 2017, advisers said.
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