On March 25th, Senator Bernie Sanders introduced the “For the 99.5% Act,” a proposal that could significantly reduce currently available gift and estate tax exemptions. If passed, the act could impact families not previously subject to gift and estate taxes. The act, whose potential enactment date is January 1, 2022, proposes the following major changes to estate and gift taxes:
While it is important to note that the “For the 99.5 Percent Act” is only in the proposal stage, it may indicate the direction of change for estate planning. Whether the mentioned legislation is put in place as of the date of signing, or effective as of January 1, 2022, as the proposal suggests, it provides an opportunity for families to take advantage of the still-elevated exemptions and other wealth transfer techniques that may be impacted by any future legislation.
If you have questions surrounding you or your family’s specific tax or planning situation, please feel free to reach out for assistance.