News 11 Oct. 2023
Curtis Team Instrumental in Shareholder Approval of a New Multilateral Treaty to Transform Pan-African Housing Finance Institution Shelter Afrique into a Development Bank
Event 23 Aug. 2023
Partner Borzu Sabahi Speaks at the 52nd IDRI Professional Accreditation & Membership Programme
Event 18 Aug. 2023
Partner Borzu Sabahi Speaks at FDI Moot Shenzhen
News 25 Jul. 2023
Partner Eric Gilioli Ranked in Top 10 Influential Energy & Natural Resources Lawyers in Kazakhstan in Business Today
Article 22 Aug. 2023
Fuad Zarbiyev Publishes Article in Journal of International Economic Law
Client Alert 14 Aug. 2023
The EU’s Market in Crypto Assets (MiCA) Regulation: The Highlights
Event 22 Aug. 2023
Partner Dr. Claudia Frutos-Peterson to Speak at Arbitration and ADR Commission of the ICC Mexico
Event 11 Jul. 2023
Partner Elisa Botero Speaks on the Role of the ICC in Investment Disputes
News 15 Aug. 2023
Legal Reader Publishes Article on Dr. Majed Alotaibi’s Arrival as Senior Counsel in Curtis’ Riyadh Office
News 31 Jul. 2023
Curtis Welcomes Senior Saudi Advisor, Dr. Majed Alotaibi, to its Riyadh Office
News 24 Aug. 2023
Curtis Attorneys Quoted in CoinDesk on FTX Founder Sam Bankman-Fried’s Strategy Ahead of His Criminal Trial
News 06 Mar. 2023
Russia Sanctions at the First Anniversary: An Overview of Current Sanctions in the US, UK, and EU and How Global Companies Can Navigate Evolving and Conflicting Sanctions Regimes
Client Alert 30 Aug. 2022
The EU Adopts the “Maintenance and Alignment” Sanctions Package
Client Alert 24 Jun. 2021
Update on Virtual Notarization (Executive Order 202.7) During the COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
Update on Virtual Witnessing (New York Executive Order 202.14) During The COVID-19 (Coronavirus) Pandemic (Updated: June 24, 2021) — U.S. Insight
Publications December 2010
On December 17, 2010, President Obama signed into law the Tax Relief, Unemployment Insurance Authorization and Job Creation Act of 2010 (the Act). Among the key points of the Act are several provisions addressing the expiring estate, gift and generation-skipping (GST) transfer tax provisions of current law.
Unification of the Transfer Taxes
In general, the Act sets the estate, gift and GST exemption at $5 million (indexed for inflation beginning in 2012) and sets the maximum tax rate at 35%. The exemption applies in 2010, except with respect to the gift tax, which remains at $1 million until January 1, 2011.
Estate Tax Provisions
The Act made several changes to the prior estate tax regime, which provided for no estate tax in 2010, but reverted to a $1 million exemption and a maximum tax rate of 55% for estates of decedents dying beginning on January 1, 2011.
Gift Tax Provisions
As noted above, beginning in 2011, the gift tax exemption is unified with the estate and GST tax at $5 million. The unification of the gift and estate tax regimes provides powerful new opportunities for transfer planning for wealthy individuals.
GST Tax Provisions
The GST Applicable Rate in 2010 is zero, which results in no GST tax on transfers in 2010. Beginning in 2011, there is a $5 million exemption (indexed for inflation beginning in 2012) and a maximum tax rate of 35%. As with the estate tax, the time to file a GST return is extended to no earlier than nine months after the date of enactment of the Act.
The zero tax in 2010 presents one-time planning opportunities for currently non-exempt generation-skipping trusts and for gifts to grandchildren or trusts for their benefit. Such opportunities will expire after December 31, 2010.
The provisions of the Act are only a temporary repair, expiring on December 31, 2012. The Act provides no guidance for planning beyond 2012. If Congress does not address these issues again before December 31, 2012, we will find ourselves in the same uncharted waters as we did only a few days ago.
For more information about the new Tax Relief, Unemployment Insurance Authorization and Job Creation Act of 2010, or if you have questions about how this new law may effect your current estate plan, please contact us.
Robert W. Sheehan