Ballots to Beneficiaries: How Potential Presidential Policies Could Shape the Future of
Estate Planning
The 2024 presidential election is only a few months away. As campaign ads ramp up and we
enter debate season, the candidates will sound off on their respective positions about a wide
range of topics, from the economy, immigration, and education to national security, the
environment, and the state of democracy.
It is probably wise to avoid talking politics with your clients in the current polarizing climate. But
you should be paying attention to the presidential front-runners and their stances on estate
planning-related issues so you can advise your clients accordingly when the next federal
government takes shape.
Evaluating the Candidates Through an Estate Planning Lens
Leading up to the 2024 election, surveys consistently show that inflation, jobs, and the economy
are the most important issues among voters.1
However, there is significant variance in the way individuals view the economy and the
economic issues that are most important to their own financial situation. Presidential candidates
are unlikely to use the term estate planning, but they frequently use the language of tax policy to
discuss issues that affect a person's estate value and the inheritance they leave behind.
Here are some policy terms to pay attention to from an estate planning perspective:
- capital gains tax
- estate tax
- gift tax
- income tax
- tax credit
- tax deduction
- tax exemption
- trust income tax
Where the 2024 Candidates Stand on Taxes2
Campaign promises set the tone for a potential presidential administration and what a candidate
will prioritize if they take office. Here are the publicly stated estate, wealth, and capital gains
policies of the 2024 candidates:
President Joe Biden
If reelected to a second term, President Biden would reportedly tax long-term capital gains and
qualified dividends at ordinary income tax rates for taxable income over $1 million and tax
unrealized capital gains at death for amounts exceeding a $5 million exemption ($10 million for
joint filers).3
President Biden also proposes a minimum effective tax of 20 percent on unrealized capital
gains from assets such as stocks, bonds, and privately held companies; higher top individual
income tax and corporate income tax rates; and tighter estate tax rules to reduce wealth
accumulation through inheritance.4
Former President Donald Trump
Former president Donald Trump has said he plans to make permanent the 2017 individual tax
cuts that he enacted during his term under the Tax Cuts and Jobs Act (TCJA).5 He also wants to
make the expiring estate tax cuts from the TCJA permanent.6
The unified gift and estate tax exclusion amount is set to expire on December 31, 2025, and
revert to pre-TCJA levels that are expected to be around half of what they are in 2024 ($13.61
million per individual/ $27.22 million per married couple).
Robert F. Kennedy Jr.
The only major tax policy that RFK Jr. has announced, according to the Tax Foundation, is
exempting Bitcoin from capital gains taxes when the cryptocurrency is converted to or from US
dollars.7 He has also expressed a desire to make tax code changes to discourage corporate
ownership of single-family homes.8
Chase Oliver
Although the Libertarian Party's candidate, Chase Oliver, has addressed many issues during his
campaign, such as immigration, student loans, and closing regulatory loopholes that reward
businesses with close relationships with government officials,9 he has not spoken on too many
issues that would impact estate planning. However, the Libertarian Party has traditionally been
in favor of limited government, the repeal of the income tax, and the abolishment of the Internal
Revenue Service.10
Jill Stein
The Jill Stein 2024 platform calls for raising taxes on the richest Americans. This includes
applying the Social Security payroll tax to capital gains and dividends, as well as increasing the
estate tax.11
Cornel West
West's platform is heavy on economic justice but light on economic policy details. His campaign
site says that the candidate would impose a wealth tax on all billionaire holdings and
transactions and close all tax loopholes for the "oligarchy."12
Planning for Tax Law Changes
Whether your clients intend to vote or not, they will be impacted by the next president's policies
on issues related to taxes and estate planning.
Prognostications about election outcomes are challenging, but the candidates present clear
contrasts in their visions for America's economic future. And with nearly $5 trillion of individual
and other tax provisions passed in 2017 expiring at the end of 2025 - including lower personal
income tax rates, higher standard deductions, increased estate tax exemptions, and the
expensing of business investment - it is probable that major tax legislation will be a priority for
the incoming administration.13
While you might prefer to wait until after the election to offer any concrete estate planning
advice to clients, you can begin discussions now about strategies to lock in the "bonus" estate
tax exemption and manage potential capital gains exposure.
To discuss specific estate planning strategies for your clients based on their age, wealth levels,
estate sizes, and legacy goals, please reach out to schedule a meeting.
MEREDITH | PC
4325 Windsor Centre Trail
Suite 400
Flower Mound Texas 75028
214-513-1013
This newsletter is for informational purposes only and is not intended to be construed as written advice about a Federal tax matter. Readers should consult with their own professional advisors to evaluate or pursue tax, accounting, financial, or legal planning strategies.
You have received this newsletter because I believe you will find its content valuable. Please feel free to Contact Me if you have any questions about this or any matters relating to estate planning.
