Gift, Estate, & Income Tax Compliance
2021 01 Value Matters

January 1, 2021

Mercer Capital’s Value Matters® 2021-01

2021 Tax Update

As valuation professionals, we aim to be an equal partner in the tax planning process with estate attorneys and advisors for businesses and high-net-worth individuals. Our goal is to actively participate in the estate planning process.

Recently, we had the opportunity to attend (virtually) the Estate Planning Council of Greater Miami’s 9th Annual Estate Planning Symposium for a day of networking and presentations. Stephen Akers, Senior Fiduciary Counsel at Bessemer Trust, highlighted several legislative developments in the tax arena, with the most notable proposals including:

  • Acceleration or alteration of the estate-tax exemption 
  • Ending basis step-up at death on capital gains exceeding $100,000
  • Raising corporate tax rate from 21% to 28%
  • Tax capital gains as ordinary income for taxpayers with income over $1 million
  • Raise top income tax bracket from 37% to 39.6%
  • Limit itemized deductions to no more than 28% of deductions
  • Restore Pease limitation for incomes over $400,000
  • Phase out 199A deduction for QBI above $400,000
  • Eliminate like-kind exchanges

More recently, Senator Elizabeth Warren has introduced legislation to create a tax on household wealth above certain threshold levels. This would necessitate annual (or some periodic) top-to-bottom appraisal of families and individuals’ assets to levy such a tax. 

While we do not wish to opine on the pros and cons of the listed tax policies, practitioners cannot simply wait and see what will happen. However, we also realize that if you work to create wealth plans for everything that may happen, you may unnecessarily overwork (and worry) your clients. We gathered thoughts on these proposals and talked to a smattering of estate and wealth planning professionals to get their thoughts on the most impactful pieces of tax legislation.

J. Mark King, CFP is the President & CCO at C&J Wealth Advisors, a wealth management firm based in Tennessee.  King was rather bullish on taxes rising under current political leadership. 

“My belief regarding taxes is that anything which changed under the Trump tax proposal is fair game to the current party in control,” said King.  “Some of this rests on how robust the economic recovery is once the U.S. and the rest of the world open back.” 

King saw the most likely changes including a lowering in the estate tax exemption, an increase in the federal corporate tax rate, and an increase in the top personal income tax bracket. 

Patrick Baumann, CFA, CTP, is the Chief Investment Officer and Partner at FourThought Private Wealth, an independent RIA based in Florida. Baumann predicts an increase in the corporate tax rate, an increase in the top personal income tax bracket, and a form of a wealth tax as the most likely tax proposals that could come to fruition.

“I do anticipate an inflection point with our fiscal policies as our economy continues to recover,” said Baumann. “Congress will have to shift its agenda from stimulating the economy to focusing on initiatives supporting our aggressive stimulus programs and infrastructure investment.”   

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Mercer Capital is pleased to sponsor The Florida Bar’s 44th Annual Attorney/Trust Officer Liaison Conference, taking place July 30 to August 1, 2026, at The Breakers in Palm Beach. Matthew R. Crow, CFA, ASA, and Thomas C. Insalaco, CFA, ASA, will represent the firm at the conference.Presented by The Real Property, Probate and Trust Law Section of The Florida Bar, the annual conference brings together attorneys, trust officers, and other professionals for focused education on current trust and estate issues. The 2026 program includes sessions on trustee discharge, fiduciary accounting, undue influence, legislative updates, technology and financial exploitation, and trust and estate case law.Matt Crow is the CEO of Mercer Capital and leads the firm’s Investment Management Industry team. He works with RIAs, independent trust companies, broker-dealers, and investment consulting firms on valuation matters related to corporate planning and reorganization, transactions, employee stock ownership plans, tax issues, and valuations of intangible assets, options, and assets subject to contractual restrictions. He is a regular contributor to Mercer Capital’s RIA Valuation Insights Blog.Tom Insalaco is a Senior Vice President and a member of Mercer Capital’s Gift, Estate, and Income Tax Planning and Compliance practice group. Since 2008, he has provided valuation services across a broad range of industries and matters, including gift and estate tax, business succession and exit planning, and buy-sell agreements.Mercer Capital works with owners, fiduciaries, and professional advisors on valuation and advisory matters involving trusts, estates, tax planning, and disputes. The firm is pleased to support programs that help professionals navigate the financial issues that arise in complex estate and trust matters.Mercer Capital looks forward to connecting with attendees in Palm Beach and participating in this year’s conference. Visit the conference’s website to learn more: https://member.floridabar.org/s/lt-event?id=a1RWQ00000RcEFJ2A3.

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