“It’s surprising that the draft bill would reduce the estate tax revenues coming into the government without an offsetting increase in revenues from some other sources,” Hills says.
The final version of the next estate tax may be “interesting” for any changes to the estate tax and any sort of revenue offset or some other revenue-raising provision, such as eliminating short-term, grantor-retained annuity trusts, Hills says.
Adds Primeau, “This is a topic of hot debate, and much like the income tax laws, has a tendency to be redrafted once a new party takes power. We’ll see what Congress can ultimately negotiate out of this mess, but my gut tells me the estate tax will remain in some form.”