eople walk past a sign alerting people to keep their valuables safe that is displayed next to the Painted Ladies on August 20, 2024 in San Francisco, California. Crime is expected to be a major issue in the Presidential Election. Ethan Swope/Getty Images
Following the first Presidential debate and Taylor Swift’s endorsement, bettors and investors are moving in favor of Kamala Harris. Alongside her rise in polls are fears of her tax policies becoming a reality for wealthy families.
In a CNBC report, the wealthy are quickly transferring their money to their children as they can still gift up to $13.61 million without estate taxes. However, this benefit could become nonexistent in 2025, along with other provisions set to expire as well.
Next year, wealthy individuals can only give up to $7 million, while couples can give up to $14 million.
Wealthy Families React to A Possible Kamala Harris Presidency
Advisors and tax attorneys from the same report shared that ultra-wealthy families fear higher estate taxes next year since Trump himself wanted to extend the tax exemption and cuts for individuals. The same cannot be said for Harris as she aims to implement higher taxes for those earning more than $400,000, per VCPost.
In return, CNBC also reported that over $84 trillion of inheritance is expected to be passed off to younger generations this year.
While some do not truly support the idea, they are stuck between owing taxes on their estate or giving their money for donation instead because of high cuts. Wealthy investors are particularly concerned that the next generation is not ready to hold and spend millions of money, also known as “sudden wealth syndrome,” but they have no better choice at the moment.
Analysts stated they could choose to gift their money to their spouse first. However, it can trigger a gift tax instead.
Those who are not inquiring about their advisors at the moment are still waiting for the next policies to strategically employ their wealth planning strategies.