The new federal tax law, enacted December 17, 2010, creates a few planning opportunities that should be considered before the end of this year. The new law has also changed exemptions and tax rates for gift tax and estate tax purposes starting in 2011. We will be sending an alert discussing these changes in early 2011.
The Generation Skipping Tax (“GST”) exemption has been increased to $5 million, effective in 2010 as well as 2011 and 2012. The GST tax rate for 2010 only is zero percent.
While the above techniques are useful only in relatively specialized situations, we want our clients to be aware of these opportunities that are available only until year end.
If you would like to discuss these opportunities, please contact your Bingham McCutchen estate planning attorney as soon as possible. Remember — there are only 10 “shopping days” left before year-end (eight shopping days if you exclude Christmas Eve and New Year’s Eve) — and these strategies take considerable time and effort to implement.
Please contact the following members of Bingham’s Estate Planning practice for more information:
Thomas E. Peckham, Practice Group Leader
tom.peckham@bingham.com
617.951.8954
Leila E. Dal Pos
leila.dalpos@bingham.com
617.951.8588
M. Gordon Ehrlich
bud.ehrlich@bingham.com
617.951.8243
William D. Kirchick
william.kirchick@bingham.com
617.951.8590
Laura B. Lerner
laura.lerner@bingham.com
617.951.8292
Amy R. Lonergan
amy.lonergan@bingham.com
617.951.8822
Lawrence I. Silverstein
lawrence.silverstein@bingham.com
617.951.8254
David L. Silvian
david.silvian@bingham.com
617.951.8257
Barbara Freedman Wand
barbara.wand@bingham.com
617.951.8614
This article was originally published by Bingham McCutchen LLP.