On September 13, the House Ways and Means Committee made public its proposed tax plan, the revenue from which would fund President Biden’s “Build Back Better” spending package. This proposed legislation would impact (among other things) estate, gift, and generation-skipping transfer tax exemptions, valuation discounts, and grantor trust rules.
The proposals under consideration, if enacted, would most impact a client who wishes to make gifts in excess of $6,000,000 to utilize as much of his or her presently available $11,700,000 exemption as possible before the new law takes effect, and/or who has an existing grantor trust, such as an ILIT, GRAT, SLAT, or QPRT. Clients with estate plans involving only revocable trusts and/or who do not wish to make significantly large gifts do not need to make changes to their plans at this time.
Read more about it by clicking here to access our Tax Alert.