Biden’s 2024 Green Book Tax Proposals: What “Fair Share” Taxation Means for Estate Planning

James I. Dougherty and Marissa Dungey (Dungey Dougherty PLLC, Connecticut) published an Article in the ABA Probate & Property Magazine, Biden’s 2024 Green Book Tax Proposals: What “Fair Share” Taxation Means for Estate Planning, Probate & Property Magazine, September/October 2023. Provided below is an introduction to the Article:

On March 9, 2023, the Biden administration released its proposed budget calling for an increase of trillions in federal spending along with his proposed offsetting revenue raisers in General Explanations of the Administration’s Fiscal Year 2024 Revenue Proposals (2024 Green Book). Department of the Treasury, Green Book (March 2023), https://tinyurl.com/5je37vvz. These tax proposals are his third since taking office and first since Republicans took control of the House of Representatives. Given the divided Congress, the chance of many or even any of these proposals becoming law now appears remote. Tax practitioners need to understand the proposals, however, to address client questions prompted by the headlines on the proposed increased taxes on high-net-worth (HNW) individuals. President Biden’s third set of tax proposals builds on his first two. His first Green Book’s headliner for estate planners was a proposal to make death, lifetime giving, and exceeding maximum holding periods for assets in trust recognition events for income tax purposes. His second Green Book contained far more proposals, with much of the attention given to a new proposal to impose a minimum tax on those worth over $100 million, which the Biden administration nicknamed the misnomer the “Billionaire Minimum Income Tax,” despite the markedly lower threshold. Last year’s proposals also gave new life to proposals from the Obama administration that affected estate planning strategies, such as changes to grantor trusts and ending perpetually GST tax-exempt trusts. The 2024 Green Book continues to build upon the prior proposals and adds further targeted attacks on common estate planning techniques for HNW individuals. The following is a summary of the key provisions affecting trust and estate planning….