Preparing Your Estate Plan For Biden Administration Tax Changes

With the passage of the Biden Administration's COVID-19 relief bill, the focus in Washington, D.C., has shifted to Administration plans for investment in infrastructure and related items and significant tax changes to help pay for that investment. The tax changes are expected to be substantial and far-reaching, and to include corporate, individual and capital gains tax rate increases; international tax changes; and estate and gift tax changes.

Expected Timing of Biden Administration Tax Changes

Congressional committees in the House and Senate are already working on tax and budget proposals that will become part of a second budget reconciliation bill. President Biden's fiscal year 2022 budget is being released this month. The House and then the Senate will craft and approve a budget resolution to serve as the vehicle for the reconciliation process. Most expect committee action to begin in early May, with ultimate enactment in the fall. Only 51 votes are needed to