At this writing, the House, but not the Senate, has addressed the looming demise of the estate tax in 2010 (but just for that year) by voting to make permanent the $3.5 million estate tax exemption and 45% rate. If the Senate does not act before the close of 2009, and Congress attempts to retroactively reinstate the estate tax and generation-skipping transfer tax in 2010, this seemingly will guarantee constitutional challenges that will keep courts busy for the foreseeable future. If repeal holds for 2010, then 2011 will dawn with a $1 million exemption and a top rate of 55%. This session will attempt to address this uncertainty by suggesting different approaches in planning, as well as various bills that address estate tax permanency, maximum estate tax rates, and "portability" - or the surviving spouse's ability to use what remains of the deceased spouse's exemption.
Course Level: Intermediate
Prerequisite: None
Method Of Presentation: Group-Based-Internet
Developer: The Knowledge Conference
Recommended CLE/CPE Hours: 2.0
Important Note: Your State Bar or Accounting Board will make the final determination with respect to continuing education credit. If you are applying for CLE credit in Texas you must register 20 days before the event date or you will not be able to obtain CLE credit.
Advance Preparation: Print and review course materials
Course Code: 093920
Ronni G. Davidowitz
Chair, New York Trusts & Estates Department
Blanche Lark Christerson
Managing Director
Beth Shapiro Kaufman
Member
Blanche Lark Christerson, Managing Director, Deutsche Bank Private Wealth Management
1. Background-Economic Growth and Tax Relief Reconciliation Act of 2001 ("EGTRRA")
2. Summary of 2010 Laws
- estate and gift tax
- generation skipping transfer tax
- carryover basis
- reporting requirements
- 2511(c) concerns and Notice 2010-19
- Impact on existing QDOTS
3. Summary of 2011 laws as currently exist
- return of estate and GST taxes
- gift taxes
- elimination of carryover basis for decedents dying after 2010
- state death tax credit
- resurrection of QDOTS
- other rules impacted
Ronni G. Davidowitz, Chair, New York Trusts & Estates Department, Katten Muchin Rosenman LLP
Planning in an Uncertain Environment
I. State Tax Considerations
a. effect on decoupled states
b. stay vigilant to changing state estate & gift tax laws II. Planning Considerations
a. review of existing plans
1. Review to avoid unintended consequences; look at tax and economic realities
2. Revise to take advantage of State QTIP election, where applicable
b. strategies to cope with uncertain tax laws
1. gifting
2. disclaimers
3. Clayton Trusts
Beth Shapiro Kaufman, Member, Caplin & Drysdale
The Problems Created by EGTRRA for 2010 and Beyond
1. Explanation of the sunset provisions
What does it mean that the taxes do not apply in 2010?
What does it mean that after 2010 the law shall be applied and administered as if the provisions of
EGTRRA "had never been enacted?"
2. Problems for those dying in 2010
How to interpret formula clauses
3. Problems with the gift tax
How will the credit for gift tax paid during 2010 (and other years) work for decedents dying in 2011
and thereafter?
4. Issues for generation Skipping Trusts created in 2010
Only the direct skip seems safe
Can a transferor allocate exemption in 2010?
Does the moved down rule apply in 2010?
Can you make a reverse QTIP election in 2010?
Does a trust created in 2010 have a "transferor?"
5. GST Issues in General
Do people who allocated $3.5 million of GST exemption still have it?
What happens to relief granted under EGTRRA (e.g. 9100 relief and qualified severances)?
6. Income tax issues
What happens to carry over basis after 2010?
7. State law issues
Will state law reformations be respected?
- CPAs
- Accountants
- Enrolled Agents
- Tax Lawyers
- Estates and Trusts practicing Attorneys
- Tax Consultants
This is a must attend event to anyone interested in understanding the latest updates on Estate Tax Legislation.
- New guidance explained by the most qualified key leaders & experts
- Hear directly from key regulators & thought leaders
- Interact directly with panel during Q&A