Wills, Trusts & Estates Prof Blog

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

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Monday, March 17, 2014

Obama Reveals Budget Proposal

ObamaPresident Obama has released his proposed 2015 budget, which would make many changes related to the estate tax and current estate planning tools. These changes include going back to 2009 estate rates that were in effect prior to the American Taxpayer Relief Act. The changes would take effect Jan. 1, 2018.

One of the proposed changes would reduce the tax exemption amount to $3.5 million for estate and generation-skipping transfers, and to $1 million for gifts given during life. The current tax exemption amount for transfers during life and at death is $5.34 million. The proposed budget would also raise the top tax rate from 40% to 45%. In addition to rate and exemption changes, the proposed budget would end the establishment of dynasty trusts. There are currently four states that allow trusts to continue indefinitely.

See Deborah Jacobs, Obama Budget Takes Aim at Popular Wealth Transfer Tools, Forbes, Mar. 4, 2014.

http://lawprofessors.typepad.com/trusts_estates_prof/2014/03/obama-reveals-budget-proposal.html

Estate Tax, Generation-Skipping Transfer Tax, Gift Tax, Trusts | Permalink

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