Tag: Biden

Conference Call: Election Updates and How to Approach Estate Planning in 2021

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.

Conference Call: Top 10 Planning Opportunities to Consider Before 2021

McManus & Associates Founding Principal John O. McManus recently held a conference call with clients to provide timely information on how the new Biden administration may impact estate planning. During the call, McManus highlighted opportunities and offered guidance on how to respond to these possible changes. Listen to the recording and find a list of topics that were covered below.

1.   Utilize your lifetime exemptions – Use it or lose it: these exemptions are set to sunset after 2025 or sooner by legislative action (possibly retroactive to January 1, 2021).

2.   Lock in now the lower Estate and Gift transfer tax rates.

3.   Sell appreciated assets prior to the potential increase in Capital Gains tax rates.

4.   Avoid the potential future limitations on Grantor retained Annuity Trusts.

5.   Sell appreciated assets to a defective Grantor Trust using the current low federal interest rate.

6.   Make intra-family loans to take advantage of today’s low interest rate environment.

7.   Create a Charitable Lead Annuity Trust if you are charity minded.

8.   Take advantage of valuation discounting before it is eliminated.

9.   Take advantage of Spousal Access Trusts so that you can continue to have access to the transferred funds.

10.Review your year-end philanthropic planning especially for gifting low basis stock.

Don’t miss these opportunities to protect your assets and build wealth. Contact McManus & Associates now to review your Estate Plan and ensure it reflects your current personal and financial goals: 908-898-0100.