As we begin 2023, the balance of power has shifted in Congress, which could impact the possibility of new legislation affecting estate planning. As James I. Dougherty points out in his article “Previewing and Prognosticating Potential 2023 Treasury Regulations,” p. 18, based on the November 2022 election results, due to this change in power, “it’s less likely that any substantial tax legislation that would have a bearing on trusts and estates will make it to President Biden’s desk when compared to the first two years of his administration.”
So what can we expect in 2023? It can be hard to predict the future, but this month, the articles in our Special Report: Forward Thinking attempt to provide some insights into what’s around the corner. For example, James’ article goes on to summarize some of the most relevant regulatory projects that are in the works so estate planners can prepare for them. And in “A Change is Gonna Come,” p. 14, Louis S. Harrison advises that grantor retained annuity trusts and sales to grantor trusts will be your two new best friends.
Family offices and businesses also will face some challenges in 2023. In “Themes for Family Businesses in 2023,” p. 28, Patricia M. Angus predicts that business owners will need to deal with uncertainty and digitalization, among other challenges. And in “New Directions and Challenges for the Single Family Office,” p. 22, Kathryn M. McCarthy explains why there will be a focus on talent management, culture and learning.
Guesswork isn’t required for the Corporate Transparency Act, which will take effect starting Jan. 1, 2024. It’s important that estate planners begin understanding the Act’s requirements, and Stephen Liss outlines the new requirements in “The Corporate Transparency Act: Our New Normal,” p. 8.
I’ll also go out on a limb and predict (barring any unforeseen circumstances or canceled flights) that I’ll be present at the Heckerling conference in Orlando, Fla. in January. Trusts & Estates will have a booth, so please stop by and say hello if you’re there.