Tax Update Blog

Wealth Transition - Priorities and Proposals under the new Biden Administration

Blog
By Ava Archibald, EA

With the new Biden administration and the results of the Georgia senate runoff election there may be future tax legislative changes that could affect the wealthy for both income and succession planning. Under the priorities noted by nominated Senate Finance Chairman, Ron Wyden, and the proposals under the new Biden administration, there appear to be three primary proposed areas of tax legislation that may affect clients who are looking to transition their wealth or closely held businesses down to the next generation.

  • Increase in Capital Gain Rates
  • Loss of Stepped up Tax Basis
  • Reduction in Estate Tax Exemption

Our goal is to advise clients on what we know the law to be currently and make them aware of potential changes, although we cannot predict the final outcome or the timing of any tax proposals. With a recent comment by Treasury Secretary, Janet Yellen that now is not the time to increase taxes, it appears there may be time for our clients to take advantage of opportunities to plan for the upcoming proposed changes. For instance, there appears to be more pressing issues for Congress to address, such as the coronavirus pandemic and stabilizing the economy, which may provide our clients time to plan ahead for the upcoming proposed tax changes.

Please contact a member of our Wealth Transition Services team if your client wants to take advantage of the time we may have to plan before any potential changes. Review our Transitioning Your Wealth insight for additional information.


Stay informed!


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