Before the Stroke of Midnight – 2010 Year-End OpportunitiesOn November 23, 2010 by Schnader
On January 1, 2010, the federal estate and generation-skipping transfer (GST) taxes were repealed, and the top gift tax rate was reduced to 35%. Under the sunset provisions of the 2001 Tax Act known as EGTRRA, on the stroke of midnight New Year’s Eve, these changes will be eliminated. Beginning on January 1, 2011, the estate and GST taxes will be reinstated with a $1 million exemption and a maximum rate of 60%. The lifetime $1 million gift tax exemption will continue but the maximum gift tax rate will increase to 60%. This Alert highlights some estate planning opportunities for individuals to consider before the end of 2010.
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