A new provision in federal tax law allows surviving spouses to utilize any unused portion of their deceased spouse’s estate tax exemption — up to $5 million — to reduce their taxable estate. But this new rule of portability does not diminish the need for clients to establish a credit shelter, or ”A/B,“ trust. Typically
Since the estate tax was technically repealed at the start of 2010 as a result of a sunset provision within EGTRRA, planning has been challenging due to uncertainty around potential legislative changes that would impose different rules. The signing of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. into law in
Already, some high profile estates drew attention this year to the fact that, for the first time since 1915, there is no federal estate tax. While the suspension of the estate tax may serve as a temporary benefit for heirs, it could also cause complications for investors who have included trusts in their estate planning.
This year marked an unusual year for the estate tax. In fact, for the first time since 1915 the country does not have a federal estate tax because the tax was removed temporarily in 2010 as part of the 2001 tax law. But, the suspension of the tax was designed to be a temporary one,
This year could mark a once-in-a-lifetime event for the estate tax. For the first time since 1915, the country does not have a federal estate tax because the tax was removed temporarily in 2010 as part of the 2001 tax law. This lapse in the law will allow heirs to escape a federal estate tax
Helping a grandchild save for college with a 529 plan may be rewarding for the grandparent as well as the child, especially with estate taxes poised to return in 2011. Grandparents may open a 529 plan as a gift to a grandchild, with the grandparent remaining as the owner of the plan. Grandparents may deposit
Grantor Retained Annuity Trusts (GRATs) are a powerful vehicle for transferring assets to family members free of gift and estate taxes. Clients who wish to take advantage of their tax benefits need to act soon. A GRAT can be funded with a wide range of investments and is typically established for a term of two