On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. This legislation had some surprises for those who had been following the process. In addition to extending unemployment benefits, current income tax rates (the Bush tax cuts) were extended for all taxpayers for two years, and the estate tax was also extended for two years – with a $5 million exemption and 35% tax rate! (Wasn’t it just a few weeks ago that, with this same Congress, come January 1, 2011, we were expecting to go back to a $1 million exemption and a 55% top tax rate?)
I have a new edition of The Wealth Counselor in which we take a first glance at the changes in the federal estate, gift and generation-skipping taxes as included in this new law. The issue is written specifically for financial professionals. In the issue there is a discussion of a number of planning options. If you would like a copy of the newsletter, please write me at email@example.com or leave a comment here containing an email address. Future issues will address planning options and concerns in more detail. In the meantime, good luck and good hunting!