Now that President Biden is inaugurated and the final seats in the Senate have been filled, tax policy will be debated in Congress this year. With additional COVID-19 stimulus pending and various projects of the new administration, such as infrastructure and efforts to slow climate change, greater government spending will be prompted. McManus & Associates Founding Principal John O. McManus detailed key estate planning issues for consideration in 2021 during a conference call with clients today. Press play to listen and review the topics covered below:
1. How might Congress enact changes to the Tax Code with an equally divided Senate?
2. What is the potential timing of any tax reform and when will it go into effect?
3. If income taxes are to rise, in what manner are increases likely to be implemented?
4. What beneficial income tax provisions could be maintained or re-instituted?
5. How can estate and gift taxes be impacted by new tax legislation?
6. Are there executive actions that President Biden can take without Congressional approval that may make it more challenging to transfer wealth as effectively?
7. What wealth transfer strategies should high net worth individuals and families consider in the first half of 2021?
8. In the unlikely event that a new tax law is made retroactive to January 1st, what are best practices to avoid a possible gift tax?
9. Will the step-up in basis be eliminated or a deemed sale upon death instituted as part of a new tax plan?
10. Why does gifting make sense even if the tax laws are not modified before 2022?
For estate planning guidance tailored to your specific estate plan, call McManus & Associates at 908-898-0100.