BAEC Bulletin - New Year 2022

BAEC Bulletin | New Year 2022 | 21

Gift, Estate and Generation-Skipping Transfer (GST) Tax: No change to gift, estate, or GST tax exemption amounts or rates. The current exemption amount of $11.7 million per person ($23.4 million per married couple), will increase in 2022 by virtue of inflation adjustments to $12.06 million per individual ($24.12 million per married couple). The exemption amount is still scheduled to be cut roughly in half on January 1, 2026. The annual gift tax exclusion amount of $15,000 per person will increase in 2022 due to inflation adjustment to $16,000 per person. “SCPA 707 has been amended to remove the blanket prohibition against felons serving as fiduciaries.”

There will be no change to grantor trust rules—such as irrevocable life insurance trusts (ILITs), spousal lifetime access trusts (SLATs), intentionally defective grantor trusts (IDGTs), grantor retained annuity trusts (GRATs), qualified personal residence trusts (QPRTs), and charitable lead annuity trusts (CLATs) There will be no change to valuation discounts— such as discounts for lack of marketability and lack of control for family limited partnerships (FLPs) and family LLCs. Passive assets held by closely- held business entities will be subject to valuation discounts, along with operating assets. •

BAR ASSOCIATION OF ERIE COUNTY DISABILITY INSURANCE PROTECTION Because your family depends on you

For more information on protecting your income, your family, and your practice, contact

4300 Camp Road Athol Springs, NY Phone: 716-627-5400 Fax: 716-627-5420 E-mail: insurance@ sellersinsurance.com

Underwritten by: Life Insurance Company of Boston & New York, Athol Springs, NY. This policy provides disability income insurance only. It does not provide basic hospital, basic medical or major medical insurance as defined by the New York State Insurance Department. The expected benefit ratio for this policy is 60%. This ratio is the portion of future premiums which the company expects to return as benefits, when averaged over all people with this policy. See the Product Brochure and/or Policy Form DIC-N (0900) NY for details concerning policy benefits, limitations and exclusions. CJS671 8/21 Exp. 8/23

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