Proposed Changes to Federal Tax Code Affecting Tax and Wealth Management ClientsOn October 12, 2021 by Schnader in Trusts and Estates
UPDATE (11/8/21). Welcome to the legislative roller coaster! For now, we can all breathe a collective sigh of relief. On November 3, 2021, the U.S. House Rules Committee released a third version of the Build Back Better bill, which includes updated guidance significantly narrowing the scope of the previously proposed changes to the federal tax code. The latest version also adds proposed changes for withdrawals and contributions from retirement accounts over $10,000,000.
Erica Howard-Potter and George M. Riter, Jr. published a client alert, “Proposed Changes to Federal Tax Code Affecting Tax and Wealth Management Clients.”
On September 13, 2021, the U.S. House Ways and Means Committee (the “Committee”) released a draft of proposed changes to the federal tax code, including significant changes affecting trusts, estates, gifts and tax rates, among other proposals. The most relevant of these modifications are outlined below. Individuals are likely to need prompt legal assistance to make appropriate adjustments in response to these expected changes.
Many of the proposed changes will become effective immediately upon the Committee’s proposal being enacted into law. For example, many of the changes under consideration would affect individuals who are contemplating utilizing their existing exemptions in 2021.