Estate Planning Alert!

Monday, May 18, 2026, Senators Patty Murray, WA and Ron Wyden, OR introduced the “Fair Trusts for Fiscal Responsibility Act” which would place an annual tax on the fair market value of assets held in a trust with a value in excess of $50,000,000.

Salient Points:

• Annual tax based upon the value of the trust assets at year end.

Tax Rate:

• Traditional Valuation Discounts including Lack of Marketability and Minority Interest Discount/Lack of Control would be eliminated
• Loans between family members would be ignored for asset valuation purposes
• Ownership interests in entities owning passive assets would be ignored and the pro rata underlying value of the passive asset without discount would be attributed directly proportionately to each owner of the entity

Takeaways: 

This bill, if enacted, would fundamentally and adversely alter the planning landscape for families and successful business owners.

Get in touch with your planning advisors and estate planning attorneys NOW to review what might be done today to mitigate the possible impact of this Bill.

This communication is not intended to create or constitute, nor does it create or constitute, an attorney-client or any other legal relationship. No statement in this communication constitutes legal advice nor should any communication herein be construed, relied upon, or interpreted as legal advice. This communication is for general information purposes only regarding recent legal developments of interest, and is not a substitute for legal counsel on any subject matter. No reader should act or refrain from acting on the basis of any information included herein without seeking appropriate legal advice on the particular facts and circumstances affecting that reader. For more information, visit www.buchalter.com.