Generation-Skipping Transfer Tax

We all know the impossible has happened: no estate tax, no generation-skipping transfer (GST) tax and no “step-up” in basis for those who die this year. Many thought and continue to think Congress will do what many of its most prominent…

In the 2001 Tax Act (known as EGTRRA), many changes were made to the estate tax system including increasing the exemption for this year to $3.5 million, lowering the top rate to 45%, eliminating the state death tax credit and culminating in…

Many married individuals adopt an estate plan designed to avoid estate tax on the death of the first spouse to die while taking maximum advantage of the so-called unified credit (also known as the applicable exclusion amount).

In this article, we discuss a concept called the "ExtraCrummeyTrust(sm)", a new, separate form of trust being introduced in Wealth Transfer Planning for 2007. It is a variation of the Crummey Trust, one of the most widely used vehicles in…

Our mothers taught us that while it is very easy to get toothpaste out of a tube, it is nearly impossible to get it back in. Accordingly, you want to start with as much in the tube as possible. The same is true of property: it is very easy…

Many married individuals adopt an estate plan designed to avoid estate tax upon the death of the first spouse to die while taking maximum advantage of the so-called "estate tax exemption." The plan typically involves setting apart the…

Unless falling under an exception, exclusion or special rule, a generation-skipping transfer tax is imposed by Code Sec. §2601 whenever property is transferred through or around one younger generation (such as the generation of the…

Under the Internal Revenue Code of 1986, taxpayers are permitted a federal gift tax exemption and an estate tax exemption. Although technically not exemptions but more in the nature of exemption "equivalents" that entitle taxpayers to a…

Parents' desire to control the way their child spends his inheritance is not new, and the resulting complications of this endeavor are evidenced throughout literature and history. A popular Bible story, that of Cain and his brother Abel,…

Fiduciaries often face many tax options and elections during the administration of an estate or trust. The manner in which the fiduciary exercises, or does not exercise, tax elections and options will significantly affect one, some, or all…