Forbes has published an article, “Time To Change Your Estate Plan – Again”, which discusses the Build Back Better Act (BBB) in relation to estate planning techniques. The article begins as follows:
The revenue portion of the Build Back Better Act (BBB) that is moving along dramatically changes the landscape for transfer taxes (i.e. gift and estate). Accelerating the scheduled reduction in the unified credit from $10 million to $5 million (indexed for inflation from 2010) is most noticeable. For those of us who are fond of round numbers, the 2022 unified credit is reduced from $12 million to $6 million more or less. The special use valuation adjustment for farms will be increased from $750,000 to $11,700,000 (the 2021 unified credit).
One of the things that it is discouraging to learn is that intellectual integrity is of limited value in tax practice. Reilly’s First Law of Tax Planning – It is what it is. Deal with it – is usually referring to taxpayers getting hammered by rules that don’t seem to make much sense. Sometimes it works in reverse. The estate planning techniques techniques targeted by BBB seem at least to me like they shouldn’t work, but they do. Which means they are in my bag of tricks and in an audit I would defend them ferociously. On the other hand I will be happy to see them go, if BBB passes.
Click here to see the full article: “Time To Change Your Estate Plan – Again”
Posted by Anthony Tran, Associate Editor, Wealth Strategies Journal