New Estate Tax Laws For 2021

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It's kind of a weird time for the estate and gift tax in early 2021.

Here's what we know: the estate tax exemption amount has been increased from the 2020 $11.58 million level to the 2021 $11.7 million amount. The $15,000 gift tax annual exclusion amount was not increased to $16,000 for gifts made in 2021 - it remained at $15,000. Barring legislative change, the Tax Cuts and Jobs Act will sunset in five years which will, generally, cut the estate tax exemption amount in half.

Here's what we hear: Biden wants to reduce the estate tax exemption amount - perhaps to $3.5 million. He may also want to cap lifetime gifts at an amount less than $3.5 million. Biden may also want to increase the estate tax rate from 40% to 45%.

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This post is for informational purposes only and does not provide legal advice. Please do not act or refrain from acting based on anything you read on this site. Using this site or communicating with Rabalais Estate Planning, LLC, through this site does not form an attorney/client relationship.

Paul Rabalais
Estate Planning Attorney

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By: America's Estate Planning Lawyers
Title: New Estate Tax Laws For 2021
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