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As negotiations continue, the latest text of the proposed reconciliation bill, titled Build Back Better Act, is void of many of the prior proposed tax changes that would have upended estate planning.

The Biden administration’s American Families and other tax proposals may complicate the tax landscape for high-income owners. Given the real possibility of targeted tax increases on the wealthy and President Biden earmarking $80 million for IRS audit efforts, business owners and family offices should review their current situations to identify opportunities in which their overall federal and state tax liabilities could be minimized.

While the gift and estate tax exemption is scheduled to drop to approximately one-half the current amount of $11.7 million on January 1, 2026, there are tax proposals in play that could change the estate and gift tax laws much sooner. Uncertainty abounds, but planning options still exist through various trust instruments, including gifting to the next generation in trust and implementation of a SLAT—spousal lifetime access trust.

The proposed Build Back America Act, a $1.85 trillion social-policy and climate framework, is working its way through Congress. While the notable prior proposals were absent, the current legislation proposes a new income tax surcharge that will be added on top of the ordinary and capital gains tax rates. The surcharge—which can bring the total surtax to 8% for certain groups—will also apply to trusts and estates and will impact high-earning individuals. Unless otherwise provided, all proposals are effective January 1, 2022.

Family offices anticipating a variety of tax law changes now have more details to consider. How would the tax law changes proposed by the House Ways & Means Committee affect family offices and wealthy families? Tax specialists examine the considerations, including the surcharge on high-income individuals, estates, and trusts that would be effective for years beginning after December 31, 2021.

Residency changes are often fraught with uncertainty from a tax perspective. States are not known for easily letting go of tax revenue and will often fight hard to keep it. If you have you relocated recently or are considering a move, it’s important to understand why your move may put you at high risk for an audit.

Family offices, much like the families that need them, are works in progress. You can’t just set up a family office ownership structure and think it won’t need some type of attention in the future. A number of factors, including regulatory changes, could compel you to revisit your ownership structure to ensure it still makes sense. See why it may be time to review your structure.

With so many potential tax changes ahead, it's time to make sure you're checking all the boxes on things you can do to protect your wealth. Now is the time to ensure your wealth plan reflects any changes in your circumstances or goals, the economic landscape, and the current tax environment. Review this checklist for potential strategies to consider, and work with your wealth management to take action prior to the December 31 deadline.

The Build Back Better Act recently introduced in the US House of Representatives includes many tax provisions that would significantly impact US taxpayers. However, any major bill’s road from introduction to enactment is typically long, winding, and unpredictable. This article summarizes four tax planning–related questions that are viewed as prime candidates for consideration by US families with substantial wealth, notwithstanding that uncertainty.

The White House released a retooled framework for the Build Back Better Act on October 28, 2021. Notable aspects of the Biden framework that will affect estate planning include estate and gift tax exemptions, grantor trusts, valuation rules, and the new surtax on high earners and non-grantor trusts—which could bring the total surtax to 8%). If this proposed legislation moves forward in its current form, it provides more time to use traditional estate planning techniques.