Estate Planning

GST Loop Hole- Must Act before 12/31/10 to take advantage of this.

By David M. Goldman

The Tulsa Estate Planning Blog reported that The 2010 Tax Relief Act creates a unique opportunity to make gifts through December 31, 2010 that are not subject to the generation-skipping transfer tax. This is because, under the new law, the tax rate is zero for any generation-skipping transfer made in 2010. Beginning January 1, 2011, the tax rate for these transfers will be 35%. In two short years the rate goes back to 55%.

Money can be taken from an existing multigenerational trust, declared subject to the 2010 GST tax, and deposited in a new trust for grandkids' benefit, with the GST tax now pre-paid at a 0% rate.

Under the tax deal, each person's lifetime exemption from gift, estate and GST tax will be "unified" at a hefty $5 million in 2011 and 2012.

Talk with your Florida Estate Planning Lawyer soon to see if you can take advantage of the new tax

Full post as published by Florida Estate Planning Lawyer Blog on December 27, 2010 (boomark / email).