Increased Exemption Amounts Create New Opportunities 2011-03-01Increased Exemption Amounts Create New Opportunities 2011-03-01
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Act) created a major change that came as a surprise to many observers: the of the federal gift and estate tax systems. Since 2002, the gift and estate tax exemption amounts had been This meant, for example, that in 2009, the $1 million an individual could give to others free of tax during his lifetime was significantly
Robert F. Sharpe, Jr., president of The Sharpe Group, Memphis, Tenn.
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Act) created a major change that came as a surprise to many observers: the “reunification” of the federal gift and estate tax systems. Since 2002, the gift and estate tax exemption amounts had been “decoupled.” This meant, for example, that in 2009, the $1 million an individual could give to others free of tax during his lifetime was significantly less than the $3.5 million that could be transferred tax-free at death.
The 2010 Act brought the two systems back into alignment. It's now possible to give up to $5 million tax-free to others during lifetime or at death. If a decedent has u...
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