Estate tax liability

I have what must seem like a Stupid Estate tax question!!

My wife/I were MOST Fortunate to receive employee stock options, in the 1980->90's. Thus we now own a portfolio that has current stock asset value over $15M. Our cost basis for those securities is ~$500k (and we annually receive ~$300k/ yearlyr in divdends).

Note: We have maybe another~ $4.5 M in other assets,. Those assets consist of our two long term RE homes. We also have about $1.5M in IRA's, misc mutual funds etc.

My estate tax question? Under current IRS regulations: What will be our Estate tax liability, upon our collective demise ? Am I correct that those stock Gains will have a Step Up in Basis, upon our death? Thus our ~$14.5 M stock gains will not be part of our IRS, married couple estate tax exemption currently at ~$11M?

The recent, congressional tax initiatives have prompted me to want to understand our current situation. Most appreciative for your guidance!

-dave

BTW: I am 67, wife 65. We are now, both of us, Florida state tax residents. The MANY userous Connecticut (ala Income and Estate) taxes prompted us to relocate to FL!! Thus we (and many neghbors) do not have CT state tax concerns

Reply to
Dave C
Loading thread data ...

Assuming an estate of $20 million, the first $11 million is exempt, and the remaining $9 million will be taxed at 40%.

You are confusing estate tax with income tax. Yes, the stock will gets stepped up basis. But that only applies to income tax. It doesn't do anything to estate tax.

Reply to
Stuart O. Bronstein

Stu

I have been away for several days, where I had access to the Newsgroups.

A Sincere Thank You (sorry for my delayed response), for clarifying my Estate tax issue !!

Thx - dave

PS I next need to understand the Trump tax changes (when/if enacted), as per our future Estate tax situation!

Reply to
Dave C

On 03-Dec-17 2:29 PM, Dave C wrote: ...

Will depend on conference -- House version repeals entirely (with step up in basis as well) while Senate version doesn't repeal but doubles the limit (afaik it also keeps the step up in basis as well).

If one were betting, I'd guess the Senate version would win on this particular point.

Reply to
dpb

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.