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Posted on Tuesday, September 1st, 2015 by Peter Klenk

From our “Ask a Question” mailbag: Has the Angel of Death Tax Loophole been closed?

No, the Angel of Death Tax Loophole continues to exist, even though presidents from JFK to Obama have asked for it to be closed. In short, the Angel of Death Tax Loophole refers to all capital gains in an estate being forgiven at a person’s death. For more details, see my previous article here.

So, if someone dies with stocks worth $100,000 for which they paid $20,000, the heir can sell the stocks for $100,000 and pay no capital gains taxes. This is a huge tax savings for clients with low basis assets.

If you have any other questions about the Angel of Death Tax Loophole or other Estate Planning matters, feel free to contact our office for a free consultation.

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