As we wrapped up a very busy 2024, the members of Warner’s Private Client and Family Office group took the opportunity to reflect on a year that had its ups and downs and plenty of uncertainty.
This year again brought us challenging and unique client matters, offering us the opportunity to provide innovative solutions to help our clients achieve their family, wealth, charitable and business goals. In addition, due to the uncertainty around tax laws scheduled to sunset after 2025, we helped many families proactively create practical and family-oriented planning that used the high estate and gift tax exemptions that are currently in place.
The Private Client and Family Office group continues to grow, and we added talented new team members in 2024 as well as additional specialty practice areas that have helped our clients with a variety of business and litigation needs. In February, the group’s chair, Mark Harder, handed the reins to a new chair, Laura Jeltema.
We are also honored to have earned recognition during 2024 in publications from local, national and international organizations such as Chambers High Net Worth 2024 Guide, Best Lawyers in America® 2025, Michigan Super Lawyers Magazine, DBusiness and Grand Rapids Magazine.
As in past years, we have provided blog posts and eAlerts on topics and legislation that impacts our high net worth clients, and we will continue to keep clients informed of any developments that could impact their planning or operations in 2025. Important developments we posted about in 2024 included a heightened focus on cybersecurity, Michigan’s new laws relating to durable financial powers of attorney and silent trusts, and a major Supreme Court decision affecting business owners who use insurance to fund buy-sell agreements.
For 2025, we continue to monitor two ongoing topics from 2024. First, we are watching to see whether Congress will act by year-end with respect to the provisions of the 2017 Tax Cuts and Jobs Act (TCJA) that will expire at the end of 2025 – including the sunset of the currently high estate and gift tax exemptions. We remind clients that it is better to take the time to carefully and proactively plan than to need reactive and hasty planning at the end of the year. We also note that even if clients have planned to use their individual $13.61 million in federal transfer tax exemptions already, the exemption rose to $13.99 million in 2025, offering another $380,000 in exemption per person that can be used this year (including an increased annual exclusion gifting amount of $19,000 per recipient).
Second, we continue to watch the battle over whether “reporting companies” must file reports under the Corporate Transparency Act (CTA). Any entity formed by filing with a secretary of state or similar office is a reporting company, including corporations and LLCs, unless the entity falls within one of several specific exemptions from this FinCEN reporting requirement. As of the date of this post, reporting obligations are currently suspended under an injunction recently issued in the Texas Top Cop Shop, Inc. v. Garland case. However, the U.S. government has appealed the injunction, and we recommend that clients owning reporting companies should continue the work needed to file their beneficial ownership information (BOI) reports with FinCEN in case filing is again required.
Despite its challenges and uncertainty, we hope this past year brought some good times for all. Warner’s Private Client and Family Office group thanks you for the opportunity to serve you during 2024, and we wish you the very best for this new year.