CLIENT ALERT
*** For our friends and clients who are considering gifts or other actions this fall in advance of potential changes to the tax laws***
As of Thursday, the House dropped the proposed changes to the estate and gift tax laws, including the grantor trust changes. The changes we alerted you about a few weeks ago may still be reintroduced but for now do not appear likely. For our clients considering major gifts this fall, revising grantor trusts or prefunding life insurance trusts, we recommend being ready to act but postponing any actions that you were only taking because of the immediate proposed changes. In postponing, it is important to bear in mind that we still recommend having your trusts ready to fund because any last minute Congressional action may make it difficult to complete the practical steps needed to complete gifts before the end of 2021. Furthermore, the $10,000,000 indexed exemption ($11,700,000 in 2021) is still scheduled to be cut in half by the end of 2025.
We continue to watch developments in Congress to consider strategies in light of possible changes and will alert you again as we learn more.
If you would like to discuss how the proposed changes would affect your estate plan, we would be happy to make an appointment to discuss.
