After a year of speculation, 2022 begins with no new federal estate and gift tax legislation. The significant changes to federal estate and gift tax laws were not implemented by new legislation. Those changes included a substantial reduction in the estate and gift tax exemption among altered tax treatment for grantor trusts and even a proposal to eliminate the different tax treatment of grantor trusts and elimination of step-up in basis for assets at death.
Keep in mind that the current estate tax exemption levels will expire after 2025, even without legislation. After 2025, the federal estate and gift tax exemption will be cut from more than $12,000,000 to $5,000,000 per individual (plus an inflation adjustment between 2018 and 2025).
Despite all of the lurking uncertainty, some positive developments for taxpayers beginning in 2022. They include: