Tax Planning After the Election

What do the recent election results mean for estate and tax planning?

One successful Senate candidate advocates lowering the estate tax exemption to a mere $1 million from the current $15.5 million.  There are many proposals in Congress to curtail the many strategies used to reduce estate taxes.  Social security reform will likely emphasize lifting the cap on earnings subject to FICA taxes.  Newly elected senators will have to address social security benefit cuts.

At least for the next two years it seems unlikely Congress will pass major changes into law.  But it is quite possible we will see major changes down the road.

One strategy that makes sense is to use the current $19,000 per donee gift tax exclusion to remove assets from a potentially taxable estate.   This has long been a popular strategy to reduce estate and gift taxes.  If you are interested in transferring assets to donees this seems like a prudent tax planning measure to take now.

Roth IRA conversions seem like another no-brainer.  Agree?  Any other ideas?

I am a tax lawyer and CPA who regularly advises about these matters.