New Tax Relief Act Includes Major changes to Estate Planning
On December 17 the President signed the “The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010” (“The Tax Relief Act”). Importantly, the Tax Relief Act adopts a $5 Million Gift, Estate and Generation-Skipping Transfer Tax exemption and applies a 35% tax rate on taxable transfers. It also extends many favorable income tax provisions, including the charitable rollover for IRA distributions. However, the Tax Relief Act only lasts two years; therefore, further changes may becoming.