Wills, Trusts & Estates Prof Blog

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

Monday, February 17, 2014

Recently Enacted Legislation Changes Estate Transfer Considerations

Pro-ConNew tax legislation passed by Congress on January 1, 2013, has changed considerations for when to transfer wealth. The gift and estate tax exclusions enacted by the new legislation have spurred discussion on what estate planning options would be most beneficial. Paul S. Lee recently presented his new approach, “freebasing,, at the 48th Annual Heckerling Institute on Estate Planning.

Lee’s approach involves comparing the benefit between the income tax costs of transferring property while alive versus the step-up in basis savings of transferring the property at death. This consideration depends on the type of property to be transferred and the state the testator and the intended beneficiaries live. Property that will likely benefit from the step-up in basis include, low-basis stock, intellectual property, art, gold, collectibles, and fully depreciated investment real estate. Property that do not benefit from the step-up in basis include, cash, variable annuities, and pretax IRAs and 401(k)s.

See Deborah L. Jacobs, Freebasing Your Estate, Forbes, Feb. 12, 2014.


Estate Planning - Generally, Estate Tax, Gift Tax, Income Tax, New Legislation, Trusts, Wills | Permalink

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I think that you meant Jaunuary 1, 2013 in the first line of this post. For a moment I thought I missed a major piece of tax legislation

Posted by: Daryl Sidle | Feb 17, 2014 4:55:58 AM

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