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Client Alert: November 2021
As of October 28th, the House dropped the proposed changes to the estate and gift tax laws, including the grantor trust changes. The changes we alerted you about a few weeks ago (below) may still be reintroduced but for now do not appear likely. For our clients considering major gifts this fall, revising grantor trusts or prefunding life insurance trusts, we recommend being ready to act but postponing any actions that you were only taking because of the immediate proposed changes. In postponing, it is important to bear in mind that we still recommend having your trusts ready to fund because any last minute Congressional action may make it difficult to complete the practical steps needed to complete gifts before the end of 2021. Furthermore, the $10,000,000 indexed exemption ($11,700,000 in 2021) is still scheduled to be cut in half by the end of 2025.