Beware of the “Ides of March” and Beyond

For those planning to tidy up your estate by going ahead and utilizing your $11 million+ gift tax exemption this year,   you may want to acquire and apply some extra drafting talent.

A number of proposals are circulating which reduce the exemption to as low as $1 million but the most difficult proposals may be provide that the reduction is applied retroactively to as early as January 1, 2021.   In other words, if you made an $11 million gift relying on the current exemption and a reduction was applied retroactively,  you would be faced with a gift tax on $10 million.  (“gulp”).   While situation is not likely,  it is not impossible.