The end of calendar year 2010 offers practitioners a once-in-a-lifetime opportunity to plan in the absence of an estate or generation-skipping transfer tax. Congressional inaction in addressing the one-year repeal of the estate and GST taxes makes it likely that any eventual legislation will not be retroactive, providing a narrow window in which to take advantage of significant tax savings.
This window also contains a number of traps to be avoided when planning. These traps include the unintended consequences of the EGTRRA sunset, the inability to allocate GST exemption, the new carryover basis rules, and the effect of documents drafted without consideration of repeal.
The objectives of this 60-90 minute audio discussion include providing participants with a conceptual understanding and practical application of the following:
• The impact of the 2001 EGTRRA legislation, the 2010 repeal of the estate and GST taxes, and their 2011 reinstatement.
• Prospects for action by Congress after the election.
• Planning for clients who may die before January 1, 2011.
• Planning for clients who have already died in 2010.
• Making gifts, including generation-skipping transfers, in 2010.
• Hedging against retroactive reenactment.
• Carryover basis for decedents dying in 2010, including allocation of the exemptions.
• Drafting issues in 2010.
Upon completion of this program, participants will be able to:
• Advise estates of decedents dying in 2010 on the implementation of carryover basis, and how to most effectively allocate the exemption to reduce income tax.
• Effectively plan for clients who may die in 2010, by leveraging the one-year tax holiday.
• Advise clients on actions to take in 2010 that may reduce estate and GST taxes in future years.
• Draft documents in 2010 for both current law and future changes.
Harold Pskowski, Richard Franklin, Brett Ferguson
Harold W. Pskowski is Managing Editor for BNA’s estate planning publications, including the Estates, Gifts and Trusts Portfolios. He received his B.A. and LL.M. degrees from Boston University and his J.D. from Northeastern University. Before joining BNA, he was in private legal practice and at the Washington, D.C. office of an international accounting firm. He is a member of the District of Columbia, Maryland, and Massachusetts (inactive) Bars, and an Acquisitions Editor for the Real Property, Trust and Estate Section of the American Bar Association. He is the editor of, or a contributor to, several books on estate planning, including the ABA’s Family Legal Guide and the ABA Guide to Wills and Estates. He has spoken to professional groups on tax and estate planning subjects.
Richard Franklin, Law Office of Virginia A. McArthur
Brett Ferguson, BNA Tax & Accounting