It is rumored that President Obama would like Congress to reexamine this rule. In a New York Times article (“Obama Will Seek to Raise Taxes on Wealthy to Finance Cuts for Middle Class”) dated January 17, 2015, Julie Hirschfeld Davis wrote:
“The centerpiece of the plan, described by administration officials on the condition of anonymity ahead of the president’s speech, would eliminate what Mr. Obama’s advisers call the “trust-fund loophole,” a provision governing inherited assets that shields hundreds of billions of dollars from taxation each year.”
The proposed elimination of “step-up” basis rule has already proven to be a highly contested issue among political pundits. Although it is difficult to know for certain as to whether or not President Obama will be successful in his efforts to push through legislation that would cause the elimination of this rule, many believe that a GOP led Congress will impede his efforts.
If you find this topic of interest, I would recommend that you take a look at the article “Obama Plan to Lower Middle Class Tax at Expense of Rich is Non-Starter for GOP” for another writer’s perspective.
-Attorney Collins Hunsaker