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”).
Affordable Care Act - How a Potential Unconstitutionality Determination May Affect Your Taxes
We bring to your attention a case that is currently pending before the U.S. Supreme Court that may affect the taxes of millions of U.S. taxpayers. The case - California, et al. vs. Texas et al. - addresses whether the Affordable Care Act (the “ACA”) is unconstitutional in its entirety.
ACA, Unconstitutionality and the Statute of Limitations - Sorting Out the Potential Mess
By George D. Karibjanian
The constitutionality of the Affordable Care Act (the “ACA”) is currently before the United States Supreme Court. An unconstitutionality determination may have ramifications for any taxpayer who has previously paid a tax created by the ACA.
This article was published in Bloomberg Tax, Tax Management Compensation Planning Journal 48 CPJ 08, 08/07/20. This article is available for download for personal use only; the article cannot be republished or redistributed without the express written consent of Bloomberg INDG.
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FALL 2020 -- BEST TIME IN 100 YEARS TO MAKE GIFTS
This Client Alert explains why right now may be the best time in the past 100 years for clients to consider transferring wealth to successive generations.
Finding Security After the SECURE Act (Top 12 Things You Need to Know About the SECURE Act)
At the end of 2019 a new law called, Setting Every Community Up for Retirement Enhancement Act of 2019, better known as the “SECURE Act”, was enacted. In our most recent Client Alert, we discuss the top 12 things you may need to known about the new law, and, importantly, how it may affect you.
Senator Sanders' Plan for the Taxation of the Wealthy
In this Client Alert, we remind wealthy families that they should consider using the current $11.58 million exclusion amount before the possibility of new laws that could reduce that amount, as well as consider taking advantage of other features of current law. In doing this, we review Senator Sanders’ plans for taxing wealthy Americans.
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Maryland Portability - Retroactive to 2011
Beginning 2019, Maryland joined Hawaii in allowing portability of its estate tax exclusion. Unique to Maryland is that it allows portability retroactively for deceased spouses who died between 2011 and 2018. Tax benefits are typically not granted based on facts occurring in past years. This surprising development now places the onus on surviving spouses, professional fiduciaries and advisors to be vigilant in determining the application of these rules.
The Estate Tax - Being Revived?
This past week was a big one for the venerable estate tax, now 102 years old – Revenue Act of 1916 passed September 8, 2016. Democrats put forth proposals for stiffening the estate tax – by decreasing the exclusion, increasing the rate and eliminating certain planning techniques (so-called “loopholes”, some of which are currently officially sanctioned by Congress in the estate tax statutes). Senator Warren advocated a wealth tax. The Washington Post alone had eight articles about the estate tax from Sunday, February 3rd to February 6th. The paper’s lead editorial on Monday, February 4th, supported the imposition of a more robust estate tax.
Thanksgiving's Past ... So It's Time to Focus on your Year-End Estate Planning!
This Client Alert provides a few year-end tips and looks forward to planning in the coming year.
Federal, District of Columbia and Maryland Estate Tax Exemptions Increase for 2018
This Client Alert provides an update to our last Update on the evolving landscape of estate tax exemptions for 2018 in the DC Metro area.