As we come to the end of 2020, we look ahead to preparing for 2021. The following are a few items to think about as we head into 2021:

Review estate plans. Although COVID 19 has affected business and client interactions, and there have been obvious changes in business practices, we have adapted and are able to effectively plan and administer estate and farm succession plans for our clients.

With more phone and online meetings, we find that we can continue to work to help our clients accomplish their goals. It is not necessary to put planning or the maintenance of your current plans on hold. Your estate planning advisers will be able to safely and effectively work with you. As in the past, take time to review your estate, business and tax plans with your advisers.

Potential tax changes. During an election year, there are often concerns about changes to taxes and other laws. Keep in mind that good plans have the flexibility to address the tax or law changes that may occur.

After the election, review how any proposed tax and law changes would affect your plan.

For example, currently the lifetime federal estate and gift tax exemption is $11.58 million for each individual. This is scheduled to sunset in 2026 back to $5 million indexed for inflation. There has been talk that this sunset could occur earlier if the law was changed by Congress. This is something to watch.

In the event it looks like estate tax changes are coming, it may be advisable change up your plan. An option for some may be to make gifts to use up the current exemption now rather than later.

CARES allows some deductions. If you itemize your income tax deductions, the Coronavirus Aid, Relief and Economic Security Act is suspending the limitation on certain charitable contributions and is allowing deductions up to 100% of adjusted gross income. Excess contributions can be carried over as deductions for the next five years.

The CARES Act also provides that people can withdraw up to $100,000 from their retirement accounts without this being subject to the normal 10% penalty if they are under age 59 1/2. The act waives the 2020 required minimum distributions from retirement accounts, too. Check with your tax professional to see if these are good options for you.

Balzarini is an attorney at law Miller Legal Strategic Planning Centers, P.A., Tyler. Email your questions and comments to Miller Legal at [email protected].