Update In The Law
In 2022 the federal gift, estate and Generation Skipping Transfer tax applicable exclusion amounts will increase to $12.06 million per person ($24.12 million for a married couple). It is important to note that there is a sunset provision on this tax plan which means that in 2025 the above taxes will decrease to $5 million (adjusted for inflation). Therefore, those who are interested in using the entire exemption amount must take into consideration that they could be hit with a higher than anticipated tax bill if the sunset provision kicks in and there is not additional tax reform. It is also not clear how the current legislature will affect these figures and it is possible that exemption amounts may be significantly reduced. We are all anxiously awaiting to see how this will change in the coming months. Despite the fact that the federal estate tax exclusion amount is so high, the Massachusetts estate tax exclusion remains at $1 million for the time being. Additionally, the 2022 gift tax annual exclusion amount will remain at $16,000 per recipient ($32,000 per recipient for a married couple). There is some estate tax planning that can be done through the use of Trusts and if you would like to discuss this with us please feel free to give Peter Moustakis a call.
Additionally, the Secure Act became law in 2020 and provided for a number of significant changes to IRAs and retirement plans. One of the most significant changes is that it mandates that most non-spouses inheriting an IRA take distributions that end up emptying the account within 10 years. In the past, IRA trusts were used to try and “stretch” the time period in which the recipient needed to use up the funds. However the Secure Act significantly changes the purpose of these IRA trusts. Therefore if you have such a trust we recommend you reach out to us to review the trust and see if any recommendations are necessary.
What’s New With The Firm
In 2021 we were proud to add Brian Young as an attorney to the firm. He will be handling primarily Bankruptcy and Litigation cases. Please feel free to give him a call and to say hi!
We are also excited to announce that we have added the following locations which will be available by appointment only: Concord, New Hampshire; Dedham, Massachusetts; Northborough, Massachusetts; and Woburn, Massachusetts. Our main office and mailing address will remain at 282 Route 101, Unit 15, Amherst, NH 03031. We hope that these additional locations will make it more convenient for our clients. The pandemic has changed many businesses, and it taught us how to grow our range of services that we can provide for our clients by using the latest technology available. We have always been a firm committed to blending the traditional practice of law with the latest use of technology and we will strive to continue that legacy.