<img height="1" width="1" style="display:none" src="https://www.facebook.com/tr?id=314834185700910&amp;ev=PageView&amp;noscript=1">

New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Learn More

What Employees of Element Solutions Need to Understand About Estate and Inheritance Taxes in a Changing Corporate Landscape

image-table

Healthcare Provider Update: Provides medical coverage through Anthem Blue Cross Blue Shield, dental via Cigna, and vision benefits, plus remote work flexibility and 401(k) matching 4. With ACA costs rising, Elements comprehensive benefits and remote-first model offer employees both financial and lifestyle stability. Click here to learn more

Knowing how death affects taxes is important in the complex world of wealth management and financial planning. The existence of two different taxes that may be assessed upon death—the inheritance tax and the estate tax—highlights this complexity. Despite the fact that these phrases are frequently used synonymously, they refer to distinct taxing regimes, each with unique regulations and consequences for Element Solutions individuals handling estates and inheritances.


The Internal Revenue Service (IRS) defines the estate tax as a levy on the right to transfer property upon death. It is applied on the entire estate worth of the departed prior to the beneficiaries receiving their share of the assets. On the other hand, the beneficiaries who get assets from the estate are immediately subject to inheritance tax. The landscape of posthumous taxation is further complicated by the fact that inheritance taxes are decided at the state level, whereas the federal government simply levies an estate tax.

Because of the large exemption thresholds, most Element Solutions individuals need to deal with these taxes has decreased in recent years. For example, the IRS received $13.2 billion in income from the 6,409 federal estate tax returns that were submitted in 2019. Of these, only approximately 40% were taxable. The Tax Cuts and Jobs Act's sunset provisions, which call for a halving of the estate tax exemption level, are the reason for the Congressional Budget Office's forecasts of a notable increase in tax revenue from these sources after 2025.

It is critical to comprehend how these taxes differ from one another. The estate tax is computed by taking the value of the deceased person's estate and adding it to the exemption level, which is projected to grow to $13.61 million in 2024 from $12.92 million per person in 2023. Federal estate taxes are levied at rates ranging from 18% to 40%. Twelve states, the District of Columbia, and the federal government all impose estate taxes, many of which have lower exemption thresholds and higher top tax rates.


There isn't a federal inheritance tax, on the other hand. Nevertheless, this tax is levied in six states, with exemptions that frequently benefit the deceased's close relatives, such as spouses and immediate family members, who are usually exempt or have reduced rates. Iowa is set to remove its inheritance tax in the next year, leaving Kentucky, Maryland, Nebraska, New Jersey, Pennsylvania, and Iowa as the states that now impose inheritance taxes.

Because Maryland is the only state that levies both an estate tax and an inheritance tax, estate planning in this jurisdiction must take this into account. Strategies like moving to a location where these taxes don't apply, establishing irrevocable trusts, or gifting assets before passing away can all be useful in lessening the impact of these taxes. If you are unable to avoid the inheritance tax, you may be able to reduce your prospective tax liability by getting a term life insurance policy.

Featured Video

Articles you may find interesting:

Loading...


To sum up, managing the intricacies of inheritance and estate taxes necessitates a deep comprehension of the legal and financial concepts controlling these domains. Proactive planning and engagement with financial and legal consultants are crucial for Element Solutions professionals managing sizeable estates or expecting sizeable inheritances in order to minimize tax costs and guarantee the effective transfer of wealth to future generations.

It is similar to skillfully navigating the shifting winds of the corporate world to navigate the complicated realm of estate and inheritance taxes. Like seasoned sailors who must navigate their ships safely to port by knowing the subtleties of the sea, retiring Element Solutions executives must navigate the complex tax regulations with skill to guarantee their financial legacy reaches its intended destination without needless loss. An analogy for this would be the increasing obsolescence of the 'dinosaur management' trend, which forces workers back into the office, much like using antiquated maps for modern navigation. In the same way, it is evident that flexibility and adaptability are critical for success in today's changing workplace and financial planning.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.
For Element Solutions in 2022, 2023, and 2024, the company offers defined contribution (DC) plans such as 401(k), aligning with industry trends to enhance employee participation. Under their plan, employees are generally eligible to participate after reaching the age of 21 and completing at least one year of service, which meets the minimum qualification requirement under ERISA guidelines​ (TR Tax & Accounting). The company has also implemented auto-enrollment features, consistent with the provisions under the SECURE 2.0 Act, which aim to increase participation in retirement plans​ (Kiplinger.com)​ (Groom Law Group). This auto-enrollment strategy was applied to ensure that employees are automatically enrolled in the plan unless they opt out, a trend driven by the SECURE Act amendments
In 2023, Element Solutions Inc. reported a decline in net sales by 8% compared to 2022, reflecting the challenging economic conditions. This decrease impacted their Electronics and Industrial & Specialty segments. To manage these conditions, the company undertook several restructuring efforts, including the syndication of $1.15 billion in new term loans to reduce gross debt. Moreover, they adjusted their pension and post-retirement benefits slightly to maintain financial stability. It is crucial to address this news due to the current economic environment and the potential impacts on employees' financial well-being, especially considering the significant changes in interest rates and global market conditions.
In 2022, Element Solutions offered stock options (SO) and RSUs to eligible employees. These benefits were available as part of the company's equity compensation program, which aimed to align employee interests with company performance.
Identify specific healthcare-related terms and acronyms mentioned in Element Solutions’ benefits documentation. These could include terms like HSA (Health Savings Account), FSA (Flexible Spending Account), PPO (Preferred Provider Organization), etc. Additional Reliable Sources: Check reputable business news websites like Bloomberg, Reuters, or Forbes for recent articles. Look at industry-specific websites or forums where current or former employees might discuss benefits. Review financial and business analysis platforms such as Yahoo Finance or MarketWatch for any reports on employee benefits.
New call-to-action

Additional Articles

Check Out Articles for Element Solutions employees

Loading...

For more information you can reach the plan administrator for Element Solutions at 1450 Centrepark Blvd, Suite 210 West Palm Beach, FL 33401; or by calling them at (561) 207-9600.

https://ir.elementsolutionsinc.com/Investors/news/news-details/2023/Element-Solutions-Inc-Receives-Sustainability-Recognitions/default.aspx https://www.businesswire.com/news/home/20230725216039/en/Element-Solutions-Inc-Announces-2023-Second-Quarter-Financial-Results/ https://www.yahoo.com/?err=404&err_url=https%3a%2f%2ffinance.yahoo.com%2fnews%2felement-solutions-inc-acquires-q-133000137.html https://www.bing.com/?ref=aka&shorturl=9849950 https://www.kiplinger.com/retirement/cash-balance-pension-plan-options https://www.dol.gov/agencies/ebsa/about-ebsa/our-activities/resource-center/fact-sheets/cash-balance-pension-plans https://www.planperfectretirement.com/extended-deadlines-for-new-pension-profit-sharing-plans/

*Please see disclaimer for more information

Relevant Articles

Check Out Articles for Element Solutions employees