NEW LEGISLATION THAT COULD AFFECT YOUR ESTATE PLAN PART 2

With Congress’s new proposed legislation, singles and married couples who have not yet assigned all of their gift, estate and GST tax exemptions, time is of the essence—gifts must be made on or before December 31, 2021, and potentially earlier if the gift will be made to a trust.

Changes affecting grantor trusts may be effective as soon as the legislation is enacted, likely prior to the end of 2021, so the window of opportunity to take action with grantor trusts may be rapidly closing.

Estate planning attorney Rebecca Doane of Doane & Doane says there are many nuances and uncertainties in the proposed reforms and further explains:Randy Doane of Doane & Doane says:

“The dollar amount that individuals can transfer during their lives or at death tax-free is currently $11.7 million per individual, or $23.4 million per married couple. Long ago, that exemption was scheduled to change on December 31, 2025, reverting to $5 million per individual, adjusted for inflation.”

Doane continues to say that the proposed legislation, if enacted, would accelerate the sunset to December 31, 2021, leaving individuals with approximately $6 million in exemptions after inflation adjustments, and married couples with approximately $12 million.

So, time is of the essence, and the time to act is now. For those who have not yet used all of their exemptions, gifts must be made on or before December 31, 2021, and potentially earlier if the gift will be made to a trust.

If you would like to discuss how the proposed legislation will affect your estate plan, or if you wish to take advantage of planning opportunities in advance of the December 31, 2021 and potentially earlier deadline, please contact the experienced estate planning attorneys at Doane & Doane. Find them online today at doaneanddoane.com.