Tax and estate planning update

To our friends who are tax and estate planning professionals, we hope you are enjoying the warmer, sunnier weather. It's an understatement to say that a lot happened this past year -- the pandemic, the presidential election, the new vaccines, etc. When things are back to "normal," I think I might have to re-learn how to live a normal life. And so it is with policies. There is certainly a lot going on and it would pay to prepare for potential tax and policy changes so we can help our clients.

It May Be Time to Start Worrying About Estate Tax - This NY Times articles discusses a possible move to lower exemption to $3.5M and return to carryover basis.

Biden's Planned Tax Hike to Hit People Earning Over $400,000 Hardest - Another article on a potential tax hike.

2020 Essential Tax and Wealth Planning Guide - Part 1 by Deloitte.

2020 Essential Tax and Wealth Planning Guide - Part 2 of the Deloitte guide.

You might also find these two articles on the recently-passed American Rescue Plan Act informative -- one on Kitces.com and the other on Tax Adviser.

Finally, if you have clients who are high wage earners, you might be interested in knowing that come January 2022, a new WA payroll tax for state long-term care (LTC) insurance is expected to kick in. The rate is 0.58%, so for someone making $500,000, the tax is $2,900. (There is no cap like there is for Social Security tax.) The only way to opt out is to buy an individual LTC coverage. The Act is expected to be finalized soon and we should know the opt-out deadline then. We can help with placing LTC coverages for your clients, so feel free to reach out with any questions.

Stay safe and healthy. 

We do not provide legal or tax advice. You should consult their own legal or tax advisor. This information is intended for educational purposes, and it is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, products, or services.