From the Internal Revenue Service’s (IRS’s) issuance of private letter rulings regarding extensions and trust modifications to a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA) deadlines and newly released Medicaid and Veterans and Survivors Pension figures, we have recently seen significant legal developments.
Current Developments: December 2024 Review
By WealthCounsel Staff on Dec 27, 2024 9:56:43 AM
2024’s Top Developments in Estate Planning, Elder and Special Needs Law, and Business Law
By WealthCounsel Staff on Dec 27, 2024 9:50:23 AM
From Internal Revenue Service (IRS) and court decisions that certain trust modifications may result in gift tax liability to a nationwide injunction against the enforcement of the Corporate Transparency Act (CTA) and a Social Security Administration (SSA) final rule omitting food from in-kind support and maintenance (ISM) calculations, 2024 was full of significant legal developments. To ensure that you stay abreast of these changes, we have highlighted some of the most noteworthy developments of the year and analyzed how they may impact your estate planning, elder and special needs law, and business law practices.
Shining Some Light on the Sunset
By WealthCounsel Staff on Dec 6, 2024 10:00:00 AM
Written by Phoebe Stone, JD, MA (Bioethics) on August 8, 2024
Exemption amounts for gift, estate, and generation-skipping transfer (GST) taxes are at historically high levels as of the writing of this article. However, absent congressional action, these exemptions are scheduled to revert to pre-2017 levels ($5 million adjusted for inflation) as of January 1, 2026, under the terms of the 2017 Tax Cuts and Jobs Act (TCJA). This is what is referred to as the coming “sunset.” Even if this dramatic decrease occurs as scheduled, the vast majority of American taxpayers are still likely to have estates below federally taxable thresholds. However, the sunset is likely to impact higher-net-worth clients, who may wish to take action now to preserve the benefits of the historically high exemptions.