Senator Chris Van Hollen and others have introduced a bill (called STEP) that would cause gain recognition on assets transferred by gift, by a distribution from a trust and upon death, subject to limited exceptions. It would be retroactive to the beginning of this year (2021). Taking that into account may curb estate tax planning this year: if someone makes a gift now using appreciated assets to use the lifetime exemption, gain will be (retroactively) recognized; funding a GRAT now with appreciated assets may also trigger immediate gain; transferring a life insurance policy to an ILIT may trigger gain; death of the grantor seems to trigger gain for all assets in a grantor trust even if created before 2021. When coupled with the Sanders’ “For the 99.5 Percent” Bill, which would make enormous changes to the estate and gift tax system, it is hard to fathom the effect on estate planning. This presentation will go over some of the key elements of the Van Hollen proposal. Please don’t miss it.
Speakers: Martin M. Shenkman, Esq. and Jonathan G. Blattmachr, Esq.
Sponsor: Interactive Legal and Peak Trust Company
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