This Client Alert further updates you of yesterday’s uncommon decision of the U.S. Court of Appeals for the Fifth Circuit, where the court reversed its recent decision (published three days ago) related to the reversal of nationwide injunction on the beneficial ownership interest (“BOI”) reporting requirements as set forth in the Corporate Transparency Act. The effect of the published opinion three days ago is that BOI reporting was required by January 13, 2025. The effect of yesterday’s opinion is that the BOI reporting requirement is once again suspended (i.e., there is no BOI reporting requirement, for now) … We encourage you to read this Client Alert.
Corporate Transparency Act Update - Filing Requirements Active Again - New Filing Deadline – January 13, 2025
BREAKING NEWS: This Client Alert updates you of the recent decision of the U.S. Court of Appeals for the Fifth Circuit (published yesterday, December 23, 2024) overturning the injunction on the beneficial ownership interest (“BOI”) reporting requirements as set forth in the Corporate Transparency Act. If you are required to file a BOI report and have not yet done so, you will have to do so now.
Key Transfer Tax-Related 2025 Inflationary Adjustments and Texas Court Issues Nationwide Injunction of the Corporate Transparency Act
This Client Alert covers the annual inflationary adjustments to the gift, estate and GST exclusion/exemption amounts, the inflation adjustment to Qualified Charitable Distributions from retirement accounts, and important information on the Corporate Transparency Act reporting.
The Who, What, When, Where and How of the CTA
The Corporate Transparency Act (the “CTA”), effective as of January 1, 2024, establishes significant, and potentially onerous, beneficial ownership reporting requirements on a broad range of entities. The attached Client Alert aims to distill the reporting obligations, highlight some areas lacking clarity, and advise our clients to discuss their potential CTA reporting obligations with their various advisors.
For additional information, see the FinCen Beneficial Ownership FAQs
Planning for the 2026 Sunset of the Lifetime Gift & Estate Tax Exclusion
The Federal gift and estate exclusion amount in 2023 stands at $12.92 million per person. A significant change is scheduled for January 1, 2026, when the gift and estate exclusion is set to be reduced by half. The estate planning implications of this impending change are broad and much discussed in existing literature. This Client Alert delves into the lesser-discussed implications of the upcoming change.
Transfer Tax Changes for 2023
Since 2011, the federal gift and estate tax exclusion amount (the “Exclusion Amount”) is subject to an annual inflationary increase. For 2023, the current economic inflationary spike is causing a significant increase in the Exclusion Amount, as well as other federal thresholds subject to annual inflationary adjustment.
Transfer Tax Changes for 2022
Even though there is no new estate tax legislation taking effect in 2022, there are increases to current estate, gift and generation skipping-transfer (GST) tax exemptions and exclusions, all of which are summarized in our latest Client Alert.
Proposed Changes to Income and Transfer Taxes – A Brief Summary of the Estate Planning Changes in the New $3.5 Trillion Infrastructure Proposal
In late August 2021, by a 220 – 212 party-line vote, the House of Representatives passed a $3.5 trillion
budget resolution,1 while also advancing the $1 trillion bipartisan infrastructure bill.
On September 13, 2021, House Ways & Means Committee Chairman Richard E. Neal (D-MA) released
the initial legislative text and a summary of the proposed “Build Back Better Act” (the “Proposal”). On
September 15, 2021, the Committee approved its sections of the Proposal that mostly addressed social issues and plans to pay for them with tax increases. The Proposal contains provisions that, presumably, seek to increase taxes on the higher income and high net worth taxpayers.
The focus of this Client Alert is on estate planning changes, which include increasing ordinary income
and capital gains tax rates for high income earners, lowering transfer tax exemptions, subjecting certain
irrevocable grantor trusts to the estate tax, and attempting to overhaul the “grantor trust” income tax rules.
Maryland’s New Elective Share Law is Effective as of October 1, 2020
In all common law jurisdictions in the United States other than Georgia,1 state law provides a surviving spouse with a minimum share of the deceased spouse’s estate. The minimum share provisions are often referred to as the “elective share.” This is a marital right that may be waived in a marital agreement, such as a prenuptial agreement.
Gift, Estate and GST Exclusion Amounts for 2021
As 2021 begins, for now (although this may change, as described below) the current gift and estate tax exclusions, GST exemption amount, tax rates, and annual gift tax exclusion are as follows:
Federal
Gift and Estate Tax Exclusions
The gift and estate tax exclusion amount (also called the “applicable exclusion amount”) increased slightly from $11.58 million (in 2020) to $11.7 million (in 2021) per individual (or $23.4 million for a married couple).1 Estates of decedents survived by a spouse may still elect to pass any of the decedent’s unused applicable exclusion amount to the surviving spouse by an election made on a timely filed estate tax return for the decedent with a surviving spouse (also known as “portability”).