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Trusts & Estates

Service Leader

Joy Matak, JD, LLM

Joy E. Matak

Contact

Parsippany, NJ
973-472-6250
[email protected]

Service Leader

Lawrence M. Gradzki, CPA, JD, LLM

Lawrence Gradzki

Contact

Parsippany, NJ
973-472-6250
[email protected]

Estate Taxes

Our world is a different one from that of just a few years ago.

Estate tax experts and other commentators have projected that we can expect at least some future change in the nation’s tax laws to address increasing deficits resulting from the pandemic and related stimulus packages.

As you may have heard, there has been some movement in Congress in the past few weeks that will likely impact these exemptions. The recently proposed “For the 99.5%” Act would bring sweeping changes to the taxation of estates, lowering the exemption from its current high of $11.7 million to $3.5 million, and increasing the federal estate tax from a fixed 40% to a graduated rate schedule from 45% to 65%. Yet another proposal, the “Sensible Taxation and Equity Promotion” (STEP) Act, would eliminate the step-up in basis that inherited assets currently enjoy.

Sax advisors look forward to working with you to set up structures that will take advantage of the unusually high federal exemption from gift/estate taxes ($11.7 million per taxpayer currently) and protect future generations of your family.

Reach out for a conversation on your specific needs, including but not limited to:

  • 2021 Exemption is $11.7 million per person ($23.4 mil per couple)
  • Exemption is the aggregate amount that can be given away during lifetime and at death
  • Under current law, this exemption will be automatically reduced in 2026
  • Congress is signaling interest in reducing exemption and raising taxes
  • Under current law, valuation discounts can help you transfer assets using fewer gift tax dollars – Congress is considering eliminating this valuable technique for transfers made in the future
  • 2021 could be a last chance opportunity

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