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Modern Estate Planning Blog

Elder Law & Special Needs Planning

Important Information That May Affect Your Estate Plan

November 15, 2021

As you may know, the House Ways and Means Committee submitted their proposal to congress on September 13, 2021 that could bring incredible changes to our estate planning clients. Since then, it’s been a wild ride and there’s been a lot of information circulating around about what this means. As things continue to change, we’ve been keeping an eye on this topic and wanted to share some helpful information and resources for you so you can make a well-informed decision about how to protect your estate plan. The latest proposal on October 28, 2021 removed many of the changes related to estates and trusts.

Here’s what remains:

  • Surtax of 5% on the modified adjusted gross income of a trust or estate above $200,000; and
  • Additional 3% surtax on the modified adjusted gross income of a trust or estate above $500,000.

Here’s what was removed:

  • Changes in estate, gift, and generation-skipping transfer tax exemption amounts. The current amount of $11,700,000 for 2021 will increase for inflation until January 1, 2026 when it will then be decreased to $5 million;
  • Change to applicability of valuation discounts;
  • Change to estate inclusion of grantor trusts; and
  • Change to the treatment of sales or exchanges with grantor trusts.

This should be good news for most people. If you believe your estate plan may be affected by the proposed tax bill or you haven’t looked at your plan in a while, please contact us at 916-241-9661 or


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