The TEA FactorThe TEA Factor
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (TRA 2010) has been described as an estate planning with its 35 percent rate and $5 million estate, gift and generation-skipping transfer (GST) tax exemption.1 How long these taxpayer friendly provisions stay in the law remains to be seen. Given the uncertainty of the U.S. fiscal posture, one common recommendation
Joseph C. Mahon
The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (TRA 2010) has been described as an estate planning “game-changer,” with its 35 percent rate and $5 million estate, gift and generation-skipping transfer (GST) tax exemption.1 How long these taxpayer friendly provisions stay in the law remains to be seen. Given the uncertainty of the U.S. fiscal posture, one common recommendation professional estate planners give to clients is to make lifetime gifts to use the $5 million exemption before these tax benefits are taken away.
But clients need to exercise caution when making these gifts. The transfer tax benefits of TRA 2010 render income tax planning a more important aspect of estate planning. U...
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