Estate Planning Review—The Journal Special Issue
What will happen in 2013 if estate, gift, and GST tax law changes made by EGTRRA
and the 2010 Tax Relief Act sunset?
The CCH FINANCIAL AND ESTATE PLANNING
Advisory Board met on July 18, 2012, to discuss what practitioners should be
advising their estate and wealth planning clients to do before year end. The
highlights of this discussion, moderated by Sidney Kess, include:
- Gifting in 2012
- Flexibility in estate planning documents
- Planning for Portability
- Family limited partnerships (FLPs)
- Intentionally defective grantor trusts (IDGTs)
- Grantor retained annuity trusts (GRATs)
- Qualified personal residence trusts (QPRTs)
Once Congress addresses the sunset of
the EGTRRA and 2010 Tax Relief Act provisions, CCH will reconvene the Advisory
Board to get the Members’ reactions and insights and will report the findings
in a future issue of ESTATE PLANNING
REVIEW—THE JOURNAL.
Get Insight from the Experts.
What will happen in 2013 if EGTRRA and
2010 Tax Relief Act provisions sunset?
Estate/Gift/GST Tax
|
2012
|
2013
|
Tax
Rate
|
35%
|
55% & 5% surtax on large estates
|
Applicable
Exclusion & Exemption Amounts
|
$5.12
million
|
$1
million (GST exemption subject to inflation through 2012)
|
Portability
|
Allowed
|
No
longer applicable
|
GST special
allocation, severance and late election provisions
|
Allowed
|
No
longer applicable
|
Conservation
easement liberalized rules
|
Allowed
|
No
longer applicable
|
Estate
tax installment payment liberalized rules
|
Allowed
|
No
longer applicable
|
Income Tax
|
2012
|
2013
|
Individual
tax rates
|
10,
15, 25, 28, 35%
|
15,
28, 31, 36, 39.6%
|
Capital
Gains
|
15%
|
20%
|
Dividends
|
15%
|
20%
|
Medicare
tax on high-income
|
0
|
0.9%
|
Medicare tax on net investment income
|
0
|
3.8%
|
Possible
2013 Revenue Raisers
- Limitations on valuation discounts
- Minimum 10-year required term for GRATs
- Limits on the term of a GST tax-exempt trust
- Grantor trusts includible in gross estate
- Consistent valuation for transfer and income tax purposes
- Extended lien on deferred estate taxes
- Five-year distribution limit on retirement distributions to non-spouse beneficiaries
- Extension of “Bush” tax cuts—only if AGI less than $250,000
No comments:
Post a Comment