Estate Planning in the first quarter of 2021 provides continuing opportunities for clients seeking to preserve and transfer wealth while minimizing or avoiding gift taxes. This Client Alert provides information on three hot topics:

  1. Using Gift Tax Exemptions in 2021 While Avoiding Risk of Retroactive Cuts: Election Outcome Leaves Retroactive Cut in Gift Tax Exemption a Possibility, but Some Techniques Allow Use of the Larger Exemptions in 2021 While Protecting Against Retroactive Cuts
  2. Interest Rates Still Low, But Trending Upward: Estate and Gift Tax Savings From Intra-family Loans, Installment Sales, Loan Refinancing, and Grantor Retained Annuity Trusts (GRATs), At Least Until Congress Curtails Those Techniques
  3. Popular and Powerful Wealth Transfer Techniques May Be Curtailed by Congress: The New Administration Has Proposed, And The New Congress Will Be Predisposed, to Cut Several Powerful Estate Tax Savings Techniques and Rules: GRATs, Valuation Discounts, Basis Step-up on Death

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The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.