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Estate Planning Considerations for 2021

Changes in transfer tax laws could be coming under the Biden administration, especially with the Democratic party holding slim majorities in the House of Representatives and Senate. During his campaign, President Biden offered a glimpse of tax policies that might come to fruition in the next four years. Notably, his legislative proposals included reducing the lifetime estate and gift tax exemptions, increasing the tax rate on transfer taxes, and elimination of the basis step-ups for inherited assets.  Any of these proposed changes could dramatically change an individual’s tax planning strategies. While it is impossible to predict the future, it is still important to promptly review your current estate plan to ensure that all options are considered in planning for potential changes in the tax laws.