06/09/2021 | News release | Archived content
Partner Jeff Paravano is quoted in an article published on June 9, 2021, by Law360's Tax Authority. The article 'Biden Budget Throws a Wrench Into Wealth Planning' discusses the Biden administration's proposal to raise the highest marginal tax rate, apply it to capital gains over $1 million and require recognizing transferred gift and estate assets.
Paravano told the publications that the proposals, when combined, would make it more difficult for high-net-worth families that own business real estate to use a common strategy of purchasing real estate, borrowing against it and taking advantage of the step-up basis at death to eliminate built-in gains.
But the primary concern of many wealthy business owners is the budget's proposals with respect to trusts, Paravano said. 'If these provisions were enacted it would make transfers of assets to heirs much more difficult and much more expensive,' he said.