For decades, the federal estate tax – also known as the death tax -­ has been a significant topic among families who own and manage America’s private forests. But a new move by the U.S. Treasury Department has brought good news to those who want to protect their legacy.

What is the death tax?

This is a tax on property that includes cash, real estate, trusts, and other assets transferred from a deceased individual to their heir(s). The death tax is imposed only on the portion of an estate’s value that exceeds a specified exemption level – which is $5.49 million per person for 2017 and nearly $11 million per couple.

For family forest owners, the death tax can often force heirs to sell off the property to pay the tax due. It also puts a huge emotional and financial burden on individuals dealing with the loss of a loved one. That’s why several organizations and forest owners across the country have pushed to repeal the death tax.

In August of 2016, the IRS proposed changes to Internal Revenue Code (IRC) section 2407(b) that would remove legitimate valuation discounts for estate, gift, and generation skipping taxes, doubling estate tax valuations for timberland. But a few months later in July, the U.S. Treasury Department identified these regulations as burdensome and decided to review for possible modification or withdrawal. On October 2, 2017, the Treasury Department announced that the proposed regulations would be withdrawn.

For more information on this issue, read the full release and make sure to stay up to date by checking our blog, or contact one of our Land Professionals!