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Estate Tax Planning Opportunities In 2021

BPM’s Joe Kitts Article Featured in Financial Advisor 01.21.21

The blue storm is now on the horizon with the Democratic control in both Congressional houses. The actual timing and extent of any income tax and estate tax legislation is still uncertain, and there still may be time to take advantage of planning opportunities before changes are enacted. 

We expect more income tax breaks for the lower income earners who spend all their dollars to help economic recovery and increased rates on the high-income earners to replenish our government coffers depleted by the pandemic. Changes to the estate tax rules that impact the ultra-high-net-worth individuals may also come, but I understand that the revenue increased by estate tax changes is dwarfed by any income tax changes and hence a lower priority for Congress to change. Note that income and estate tax planning must address the possibility that Congress can enact retroactive tax law changes, but normally changes become effective on the date enacted by Congress or the beginning of the next calendar year. Sweeping changes have been proposed by Biden’s administration and now it is just a matter of when and how much. 

Read the full article in Financial Advisor. 

About BPM’s Estate, Gifts & Trusts Practice 

Estates, gifts, and trusts plans are the result of deep thought given to your family, your priorities, and your legacy; they reflect your truest intents. Given the volatile nature of the economy, however, these plans are subject to changing laws that may result in unintended effects. 

BPM's approach towards estates, gifts, and trusts planning is proactive and strategic. Our objective is to work with you in developing a plan that meets your expectations and that also demonstrates foresight in the face of changing laws. We develop options that minimize your tax obligations to the greatest extent possible. With some advanced planning and the help of our accountants, feel the peace of mind in knowing that your family and wishes are cared for. Learn more on the BPM website.