Gary Cohn, a White House advisor on tax-planning, uttered these words to a group of senate Democrats recently. To Cohn, his comment underscored the fact that very few of the uber wealthy pay estate taxes anyway so eliminating the tax would do very little to the revenue side of the government’s ledger.
But Mr. Cohn has a point here. Only 1 out 500 Americans are affected by the tax and those that are usually use a myriad of IRS allowed techniques to eliminate the tax all together. Some of these strategies are the following:
Using the Annual Exclusion(now $14,000 per person) to gift monies and/or assets out of their estates.