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Good to Know: CFP® Practitioner Updates

A financial planner’s work is never done. The administration’s proposed 2014 budget takes aim squarely at the “permanent” estate tax reforms passed in January 2013.  The current $5,250,000 estate tax exemption would plummet $1,750,000 to only $3,500,000. The estate tax rate would jump to 45% from the current 40%.

But that’s not all. The proposal would impose gift tax on gifts in excess of $1,000,000.  Contrast that with today’s rules under which a taxpayer may gift as much as $5,250,000.

But even that’s not all.  Restrictions were proposed that would curtail or eliminate powerful tools such as  grantor-retained annuity trusts, intentionally defective grantor trusts, and dynasty trusts.

Now for the good news. These proposals are merely that.  No laws have been enacted yet.  We conclude with a planning tip.  If your client is planning to transfer a financial legacy, the time to act may be now.

To learn more about how thousands of professionals have taken the next step to obtain the CFP® certification, visit our website at www.financialplannerprogram.com.