On October 28, 2021, the president announced a new framework for tax system changes to raise the revenue for the expenses associated with the Build Back Better Plan. Increased income taxes will impact fiduciary income taxes for those tax years starting on or after December 31st, 2021.
The first of these is an additional 3% surtax on the modified adjusted gross income of an estate or a trust with a value of above $500,000. For the income of a trust or an estate above $200,000, there is a surtax of 5% on the modified adjusted gross income. This is a perfect opportunity to meet with your knowledgeable estate planning lawyer about your estate planning strategies and options. You can make things much easier for yourself and your entire family by doing proactive planning and partnering with a law firm who has experience and knowledge in this area.
Your lawyer can keep you informed as changes occur in state or federal laws and this can be extremely beneficial for helping you proactively plan for the future. If you need an update to your estate plan, call to schedule an appointment today.
At our Pasadena estate planning law office, we work hard to make sure we support you through every phase of your life with a corresponding estate plan. We help you make adjustments throughout your life for your personal plan, asset protection, long term care considerations, and even business succession planning.
It all starts with an initial meeting to discuss your needs. Contact a dedicated estate planning lawyer today to get more information about next steps.