Marcum 2021 Year-End Tax Guide

Consult your Marcum tax professional to discuss gift and estate tax planning strategies that may be appropriate for your unique facts and circumstances.

amount subject to estate tax. Keep in mind, if gifting to a trust an amount equal to the annual exclusion (or less), you should consult with your tax advisors about whether a gift tax return should be filed, despite the gift amount falling within the annual exclusion limits. The rules on gifts to trusts are rather complex, and generation-skipping transfer tax laws must be considered on all gifts to trusts (as well as gifts outright to individuals that skip generations). Other strategies not covered in this article may also be employed, such as funding charitable remainder trusts and funding 529 plans (education planning) for children and grandchildren, among other planning options. Taxpayers should also consider state and local tax laws, and how they may differ from federal tax law with respect to estate planning.

MARCUM RECOMMENDATION Because of the uncertain outcome of whatever legislation is ultimately enacted into law, high net worth individuals should still consider making gifts to reduce their estates, effectively transferring additional wealth to their heirs.

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