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The Biden Administration is preparing to make sweeping changes to our taxes in order to pay for infrastructure projects. The estate and gift tax laws are currently on the chopping block.
Many families were not concerned with estate tax planning in recent years with the $11 Million exemption (even more when adjusted for inflation). However, current proposals in Congress seek to reduce the exemption to $3.5 Million. In addition, congressional proposals are taking aim at estate planning techniques, such as discounted gifting, utilized by estate planners to reduce a client’s overall estate tax burden, and drastic changes to the capital gains taxation of inheritances, including limiting the step-up in basis on inherited assets. Imagine inheriting your parents’ home and paying capital gains taxes on the appreciation between what they paid for the property, say $40,000, and what you sell it for, say, $500,000?
While no new legislation has been signed into law yet, changes are coming and NOW is the time to take advantage of the current rules before they change.
What You Should Do:
✓ Review your estate plan immediately!
✓ Be sure you have Credit Shelter Trusts in your Last Will and Testament
✓ Discuss Life Insurance Trusts and other Trusts to protect Estate Assets
✓ Meet with us to review your circumstances and see which planning techniques are best for you and your loved ones
Contact the experienced estate planning attorneys at Cona Elder Law at 631.390.5000 today to discuss your estate tax planning.
Cona Elder Law is a full service law firm based in Melville, LI. Our firm concentrates in the areas of elder law, estate planning, estate administration and litigation, special needs planning and health care facility representation. We are proud to have been recognized for our innovative strategies, creative techniques and unparalleled negotiating skills unendingly driven toward our paramount objective - satisfying the needs of our clients.
2021 Estate Tax Proposals
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