Ever since the passage of EGTRRA in 2001, estate planners have had to deal with the uncertainty of a changing estate tax. The repeal of the estate tax in 2010 and its reintroduction in 2011 with a smaller exemption and higher rates had the effect of discouraging planners and their clients from engaging in long-term planning.
The recent passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 has changed the playing field, but with only a temporary two-year fix. The Act has resolved the uncertainty for estates of decedents dying in 2010 by giving them a choice between no estate tax, but with carryover income tax basis, or the imposition of an estate tax with a $5.0 million exemption.
The new $5.0 million exemption, together with a 35% tax rate, applies to estates of those dying in 2011 and 2012, as well as to gifts and generation-skipping transfers made in those years. Then, in 2013, the pre-EGTRRA law will return, with a $1.0 million exclusion and a maximum 55% tax rate. This presentation will focus on the opportunities offered for planners by these changes in 2011 and 2012.
What will be covered:
This 60-90 webinar will provide participants with a conceptual understanding and practical application of the following:
1. Options available for estates of decedents dying in 2010
2. How generation-skipping transfers made in 2010 are affected by the new legislation
3. The new exemptions and rates for the estate, gift and generation-skipping taxes
4. The opportunities for tax-free gifting programs in 2010 and 2011
5. How the increased exemptions favor the creation of dynasty trusts
6. The availability of estate tax exemption portability in 2011 and 2012
Education Objectives:
Participants will learn:
1. How to advise estates of decedents dying in 2010 on whether to accept the estate tax or to elect the carryover basis regime
2. The continued merit of credit shelter trusts versus exemption portability
3. Leveraging the increased estate and gift exemptions by the use of dynasty trusts and grantor retained annuity trusts (GRATs)
4. How to advise clients on generation-skipping transfers in 2011 and 2012
5. Why this is an opportune time to review estate plans.
Alan Gassman