Estate tax planning 2010: throw Momma from the train?

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Date: Feb. 2010
From: The CPA Journal(Vol. 80, Issue 2)
Publisher: New York State Society of Certified Public Accountants
Document Type: Article
Length: 607 words
Lexile Measure: 1350L

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The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA) temporarily suspended the federal estate tax and generation-skipping transfer (GST) taxes for one year--2010. Since the passage of this law, jokes about "pulling the plug" on wealthy relatives to take advantage of this one-time opportunity to inherit assets--tax-free--have circulated within financial circles. But asking a loved one to time their passing to maximize the tax benefits would likely not go over well. So before potential heirs prematurely count their money, let's examine whether reports of the demise of the so-called death tax have been exaggerated.

Because changes to our tax laws are supposed to be revenue-neutral, what Uncle Sam gives with one hand, he takes away with the other. The same law that eliminated the estate tax also changed the step-up in basis provision. Prior to these changes, the basis of a decedent's assets was increased to fair market value...

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Gale Document Number: GALE|A220512996