The estate tax policy leanings and proposals from Senator Sanders, Senator Wyden, and the President all indicate that massive changes are coming. This course will discuss a lower estate tax exemption, increased tax rates, elimination of specific valuation “discounts,” and a general reduction in available planning techniques.

These raise complex questions, including whether it is prudent to incur estate and gift tax early, before enactment. Practitioners must also question whether certain transactions which attempt to front-run the legislation will be effective. Additionally, the possibility that forced income tax realization events will be imposed at death or gifting makes planning all the more complex.

This class will also cover the tax and mathematical aspects of the proposed changes.

Learning Objectives:

• Recall the “use it or lose it” nature of the Trump-era estate tax exemption


• Identify portability—how it works with gifts and the likely impact of reform


• Determine why a 706 extension is wise and buys time for the “legislative” fog to clear


• Recognize why not making a QTIP election may save estate taxes


• Measure the proposed estate tax rate structure from 45% to 55%


• Summarize the impact of eliminating marketability discounts


• Evaluate the effect of removing minority interest discounts


• Recall the proposed gain realization rules under the STEP proposal and the potential of a 39.6% LTCG rate at death


• Determine why the “tax-exclusive” gift tax with an effective rate of 28.57% may be prudent compared to a 45% to 55% estate tax rate


• Recall how to increase the basis of property with a 2021 taxable gift


• Identify why 2021 gifts can lock in discounts and reduce the effective gift tax rate


• Determine why GST planning is integral to advanced plans


• Recall how to compare paying estate tax at the first death compares to taxable gifts, IDGTs, SCINs, PAs, and GRATs


• Recall how to compare taxable gifts to IDGTs, SCINs, PAs, and GRATs