The updated version of the Build Back Better Act released by the House Budget Committee on November 3, 2021, does not include any of the significant gift tax, estate tax, generation-skipping transfer tax or grantor trust legislation that was included in the House Ways and Means draft legislation issued in September 2021. The Build Back Better Act does, however, contain significant income tax rate increases for trusts and estates with income of more than $200,000, as well as for high-income individuals.
The Build Back Better Act has not yet been “scored” by the Congressional Budget Office. Nor has it been approved by the full House or any Senate committee. Thus, significant changes could still be made, including adding back revenue raising provisions from the September version of the proposed legislation, especially if scoring by the Congressional Budget Office finds that the revenue raised will not pay for the spending contained in the bill. As of November 11, 2021, it is far from certain whether any version of the Build Back Better Act will be approved by Congress.
We will continue to keep our clients updated as the situation in Washington develops.