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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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Paul Rabalais
Estate Planning Attorney
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By: America's Estate Planning Lawyers
Title: New Estate Tax Laws For 2021
Sourced From: www.youtube.com/watch?v=VOJDdy4eyV4
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