Build Back Better Act I, II, III: Current Version and Trusts and Estates

Trusts and estates lawyers and advisors have been keeping a close watch on recent developments regarding the tax proposals contained in H.R. 5376, commonly known as the “Build Back Better Act” (the “Act”). Three versions of the Act have attempted to make significant changes to current gift, estate, and trust income tax law.

Following is a summary of the proposed changes in the first version initially released by the House Ways and Means Committee on September 13, which have not been included in subsequent versions released by the House Rules Committee:

The versions of the Act released by the House Rules Committee on October 28 and November 3 include the following proposals:

These proposals are currently under consideration by the U.S. House of Representatives. It remains uncertain at this time as to whether any of the items proposed in prior versions of the Act will be added back to the final law. It also remains unclear as to whether there will be adjustments to the income and capital gains tax rates. Individuals and fiduciaries who may be affected by these proposals are encouraged to consult with their advisors to explore what impact, if any, these proposals may have on their specific circumstances.

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National Law Review, Volumess XI, Number 316