House Democrats Propose Sweeping New Changes To Tax Laws That Stand To Have Major Impact On Estate Planning—Part 1

On September 13, 2021, Democrats in the House of Representatives released a new $3.5 trillion proposed spending plan that includes a wide array of changes to federal tax laws. Specifically, the Democrats have proposed a number of significant tax increases and other changes to funding the plan, including increases to personal income tax rates and the capital gains tax rate, along with a major reduction to the federal estate and gift tax exclusion and new restrictions on Grantor Trusts that would basically eliminate such trust’s ability to be used as planning vehicles.

While the proposed legislation is still under consideration and far from being finalized, given the broad-reaching impact these changes stand to have, we strongly encourage you to take action now if you would be affected by the proposed legislation if it does pass. With the exception of the capital gains rate increase, which could go into effect on transactions that occur on or after Sept. 13, 2021, most of the proposed changes would be effective after December 31, 2021, meaning that you have time to plan now.

Estate Planning, TaxesErica EndykeOctober 6, 2021estate planning, retirement planning, retirement account, retirement, tax-declare retirement, house democrats, house of representatives, proposed spending plan, income tax rates, capital gain tax rates, estate and gift tax exclusion, grantor trusts, planning solutions, estate plan, family wealth planning, retirement account assets

7 Ways To Save Big Money On Your 2020 Taxes—Part 1

2020 was a nightmarish year for many families. But thanks to recent legislation, you could see a silver lining in the form of major tax breaks when filing your income taxes this spring. First up, although it’s technically not a tax break, the IRS announced this week that the deadline for filing your 2020 federal income taxes has been pushed back from April 15 to May 17, 2021, which gives you an extra month to get your tax return handled.

The postponement applies to individual taxpayers, including those who pay self-employment taxes. But the extension does not apply to first-quarter 2021 estimated tax payments that many small business owners file. So if you file quarterly taxes, contact your tax advisor now if you haven’t already done so.

Finances, Kids Protection PlanErica EndykeMarch 23, 2021tax return, tax-saving opportunities, legislation, income taxes, federal income tax, tax breaks, ways to save money, IRA, 401k, RMD, tax-declare retirement