On September 27, 2021, the Build Back Better Act (the
"Act"), was introduced in the House of
Representatives. Although negotiations are ongoing, if the Act
or legislation similar to the Act is enacted, it will substantially
impact gift, estate and trust planning. As proposed, many of
the changes could be effective as of the date of the law's
enactment, so it is imperative that you review and assess your
estate plan as soon as possible. A brief overview of the
currently proposed changes that most impact estate planning are as
follows:
Decrease in Estate, Gift and Generation Skipping Transfer
("GST") Tax Exemption Amount
Current law. For U.S. citizens and domiciliaries,
until 2026, the gift, estate, and GST tax exemptions are each $10
million per person, indexed for inflation (in 2021, the exemptions
are $11.7 million). Generally, for married couples, this
amount is essentially doubled.
