May 14, 2021

Got an extra $11.7 million laying around? Listen up! It’s time to get your checkbooks ready, because estate tax restrictions for the 2021 tax year allow individuals to transfer up to $11.7 million to their beneficiaries before facing the federal estate or gift tax. But, if enacted, Joe Biden’s proposed tax plan is going to drastically change that. The estate tax exemption is anticipated to be reduced by almost 70% from its level for the 2020 tax year of $11.58 million of estate assets, to $3.5 million in estate assets and $1 million for gifts, with a top tax rate of 45%.

Want to make sure your estate plan doesn’t get hit by these taxes if the current exemptions are reduced? Friedman + Huey is here to help!

This information is general, not specific, and is only meant to give perspectives on matters discussed which may change without notice. It is not intended to be tax or financial advice.  Information has been obtained from various sources believed to be reliable, but interpretations and accuracy are not assured. Please contact us for any questions you may have or to revisit your planning strategies.