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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June 2026 | Complex Capital Structures in Transfer Tax Planning: A Valuation Perspective
Value Matters® June 2026

Complex Capital Structures in Transfer Tax Planning: A Valuation Perspective

Capital structures of privately held businesses have become increasingly sophisticated in recent years. Once the preserve of venture capital and large private equity transactions, complex capital structures now appear regularly in family-owned businesses, founder-led companies, and real estate holding and other closely held investment companies.
WEBINAR: Complex Capital Structures in Transfer Tax Planning-A Valuation Perspective
UPCOMING WEBINAR: Complex Capital Structures in Transfer Tax Planning - A Valuation Perspective
This program examines the increasing prevalence of complex capital structures in privately held businesses and the valuation challenges they present in gift, estate, and transfer tax planning.
Mercer Capital to Sponsor TexasBarCLE’s 50th Annual Advanced Estate Planning & Probate Course
Mercer Capital to Sponsor TexasBarCLE’s 50th Annual Advanced Estate Planning & Probate Course
Mercer Capital is pleased to sponsor TexasBarCLE’s 50th Annual Advanced Estate Planning & Probate course, taking place June 3 -5, 2026, at the Hyatt Regency Frisco-Dallas. J. David Smith, CFA, ASA, and Andrew B. Frew, ASA, ABV, will attend on behalf of the firm.Hosted by TexasBarCLE and cosponsored by the Real Estate, Probate & Trust Law Section of the State Bar of Texas, the annual course brings together estate planning and probate professionals for three days of focused education and discussion. This year’s agenda includes sessions on case law updates, fiduciary issues, grantor trusts, retirement benefits, will contests, and current developments in estate planning tax law.David Smith is a Senior Vice President at Mercer Capital and a senior member of the firm’s tax practice. He provides valuation services for tax planning, transactional purposes, and financial reporting, with particular experience in industries including financial services, oil and gas, and biotechnology. David is also a regular contributor to Mercer Capital’s Value Matters Newsletter.Andrew Frew is a Vice President at Mercer Capital and has nearly 25 years of business valuation experience. He has been involved with hundreds of valuation and related engagements across numerous industries and values businesses and business interests for gift and estate tax, charitable giving, buy-sell agreements, mergers and acquisitions, business succession and exit planning, and litigation support purposes.Mercer Capital regularly assists attorneys, fiduciaries, and advisors with valuation matters that arise in estate planning, probate, tax planning, and related disputes. The firm is pleased to support programs that help professionals address the financial issues that often accompany trusts, estates, and closely held business interests.Mercer Capital looks forward to connecting with attendees in Frisco. Additional information about the course is available through TexasBarCLE: https://www.texasbarcle.com/.

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