Last month, the House Ways & Means Committee (the “Committee”) approved draft legislation (the “Legislation”) as part of Congress’ ongoing $3.5 trillion budget reconciliation process. The Legislation includes significant tax proposals that, if passed, will dramatically change the tax and estate planning landscape for high-income and high-net worth individuals.
On September 26, 2021, the House Budget Committee released House Report No. 117-130 (the “Report”). The purpose of this 501-page Report is to explain the intent of the tax provisions contained in the 881-page Legislation.
Below is an overview of the tax proposals that are particularly relevant for estate planning purposes: