Lifetime exemption levels at all-time highs ($11.7M per individual / $23.4M per couple);
April 2021 Mid-Term Applicable Federal Rate (“AFR”) is 0.89%;
Top marginal federal estate tax rate is 40% with a potential proposed increase;
Top marginal federal income tax rate is 37% with a potential proposed increase;
The effective elimination of State and Local Tax (SALT) deductions for UHNW families; and
200+ alternative investment strategies available through PPLI.
For comparison, in 1996, an individual’s lifetime exemption was $600K and the January Mid-Term AFR rate was 5.73%. The top marginal federal estate tax rate was 55% and the top marginal federal income tax rate was 39.6%. Note: PPLI was in its infancy with limited Insurance Dedicated Funds (IDFs) available.