Think back to December 2020: we knew that Joe Biden was elected President but--with the Georgia Senate seats still in a toss-up--we didn’t know what Congress’s makeup was going to be. That meant that trying to predict what was going to happen with tax reform was like asking a Magic 8 Ball.  Cut to today: we know that Democrats hold the majority in the House and a razor-thin majority in the Senate. That means tax reform may be on the table (among many other issues).

Actually receiving an inheritance from someone who has passed away isn’t a taxable event, but how much tax you’ll pay when you take money out of that asset—for example by selling a stock or distributing money from a retirement account—depends on the asset itself. Here’s why. Got a step-up in basis? You’ll owe less tax if you sell. When an heir receives an asset from a decedent, the value of the property must be determined.

Download the PDF version of this checklist: Private Wealth Design Checklist