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Estate tax repeal unlikely soon

A financial adviser says farmers shouldn’t count on a reduction in estate taxes any time soon.

Donald Trump pledged to abolish the estate tax during the presidential campaign. Jim Rein, Head of estate planning for K-Coe Isom says President-Elect Trump and congressional leaders might focus more on cutting other taxes that will impact more Americans.

“Of course income tax affects almost all of us and estate tax impacts very few. So that’s something I think they’ll be looking at as to what I can get off my list that I’ve promised my constituents. I think we’ll see the estate tax take a back seat to those other items,” says Rein.

Rein cautions farmers about planning for tax reductions as they develop their 2017 financial plans.

“Because the tax side of it is only one piece. There’s so many other reasons you would want to do it, peace of mind for your family and your operation, asset protection, there’s a lot of different reasons. So I want to keep folks thinking of, what’s the right thing to do,” says Rein.

Rein says farmers need to consider all financial factors for their operations and not just tax issues.

Audio: Jim Rein, Estate Planning, K-Coe Isom