Practitioners worried about possible changes to inheritance tax law, including rate increases, in the second half of 2021; a reduction in the exemption; Elimination of valuation discounts; Limits for GRATs; Changes of the trust giver; and enforced recognition of profits in trusts without grantors. Taxpayers were also concerned because of their concerns. It ended up being a William Shakespeare comedy: “Much Ado About Nothing”.
For 2022 we’re looking at Shakespeare again, this time on “The Tempest”. “The past is prologue”: The inheritance tax laws will not change.
Why can we be so sure of this prediction?
Two Senators who are Democrats face re-election in 2022. Both won their last races by a narrow margin. Senator Maggie Hassan (DN.H.) last won 0.1% in a state that won the President by 7.2%. On November 24, 2021, Fortune reported a negative 2% favoritism rating for the President in New Hampshire. Senator Catherine Masto (D-Nev.) Last won 2.4% in a state that won the president by 2.4%. The same article reported a 3% negative rating for the Nevada president.
In 2022, taxpayers should conduct inheritance tax planning because it’s a good idea, not for fear of upcoming legislative changes.
This column does not necessarily represent the opinion of the Bureau of National Affairs, Inc. or its owners.
Information about the author
Bruce Givner, Esq. is of Counsel to KFB Rice, LLP in Los Angeles, California
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