Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Wednesday, June 19, 2013

ATRA Tax Implications

TaxRecently, Congress passed the American Tax Relief Act of 2012, or “ATRA”. The Act affects only already existing provisions, but has many new tax implications. Some of the provisions included in the act will positively affect estate planning. One of the areas affected by the Act is the maximum estate, gift and GST tax rate. The rate is now permanently set at 40%, which occurs on taxable estate worth more than $5,250,000. Moreover, ATRA set the tax-exempted amount for decedents’ estates at $5.25 million. ATRA has also given something for married couples to think about. The Act extended TRA 2010’s ‘portability’ provision, permitting married couples to transfer unused estate tax to the surviving spouse. ATRA has made many previous temporary provisions permanent. However, the change from temporary to permanent can significantly change estate-planning techniques.

See Lewis Saret, ATRA : An Unexpected Plus To Your Estate Planning --Part I, Forbes, Jun. 13, 2013.

Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2013/06/atra-tax-implictaions-.html

Current Affairs, Estate Planning - Generally, Estate Tax, Gift Tax, Income Tax | Permalink

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