Paul Caron has published an article on the TaxProf Blog, titled “Tax-Free Inheritances Fuel America’s New $73 Trillion Gilded Age”, which discusses how the top 1.5% of households form the vast majority of U.S. transferred wealth. The article begins as follows:
Almost half of all U.S. wealth transferred over the next quarter century will come from the top 1.5% of households.
Americans can expect to inherit $72.6 trillion over the next quarter century, more than twice as much as a decade ago, in the latest indication of how soaring markets are poised to bolster the next generation of the ultra-rich.
Almost half of all U.S. wealth transferred from the end of 2020 through 2045 will come from the top 1.5% of households, according to estimates from research firm Cerulli. Using trusts and other techniques, the wealthiest Americans can shield the bulk of their fortunes from the federal government’s 40% estate and gift tax levy. President Joe Biden and Democrats in Congress have so far failed in efforts to plug such loopholes and otherwise boost inheritance taxes.
Click here to see the full article: “Tax-Free Inheritances Fuel America’s New $73 Trillion Gilded Age“
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal