The Act would move the sunset date to the end of this year, reverting to a $5,000,000 exclusion, adjusted for inflation, after December 31, 2021. Since 2017, we have enjoyed historically high gift, estate, and generation-skipping transfer tax exclusions ($11,700,000 in 2021), knowing that these exclusions are scheduled to sunset at the end of 2025. There are several proposed modifications to the current estate, gift, and generation-skipping transfer taxes and associated planning strategies with grantor trusts and there are at least three reasons to consider making gifts well before the end of the year.
And no matter what the law or the changes in the law, undone planning is a burden we can resolve when we take action. What is done is done, but we can plan for what is to come. We will not know the actual effective date of any provision of the Act until (and if) an actual bill is passed. The proposed effective dates of the separate provisions of the Act vary – the date of introduction (September 13, 2021), the date of enactment of the Act, after December 31, 2021, or later. LP's Trust & Estates Group offer a few thoughts for you to consider (and take action as appropriate) on proposed changes in the estate, gift, and generation-skipping transfer taxes, income taxes, and the taxation of retirement accounts.
There will likely be many changes to current proposals before and if they become law.
#Trusts providing delayed capital gain 2017 series#
We now have a new and pressing series of proposed tax law changes with the “Build Back Better Act” (the “Act”) that is winding its way through the legislative process in Washington D.C. What is missing from this short list is a third inevitable occurrence – tax law changes. It is said that two things are certain in life: death and taxes.
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