Once again.. this is a preview of what is currently under discussion. It is NOT law, and should not be looked at as political, legal, or financial advice. This is only a brief look at some of the currently debated act, as it impacts our senior clientele.
Estate Tax
Top on the list for most of our elder law clients, is preserving their estate. Below are the changes, verbatim, on what we may expect to see in tax relief in Estate Taxes.
Temporary Estate Tax Relief
Temporary estate, gift and generation skipping transfer tax relief. The EGTRRA phased-out the estate and generation-skipping transfer taxes so that they were fully repealed in 2010, and lowered the gift tax rate to 35 percent and increased the gift tax exemption to $1 million for 2010. The proposal sets the exemption at $5 million per person and $10 million per couple and a top tax rate of 35 percent for the estate, gift, and generation skipping transfer taxes for two years, through 2012. The exemption amount is indexed beginning in 2012. The proposal is effective January 1, 2010, but allows an election to choose no estate tax and modified carryover basis for estates arising on or after January 1, 2010 and before January 1, 2011. The proposal sets a $5 million generation-skipping transfer tax exemption and zero percent rate for the 2010 year. 5 of 12
Conservation Gifts & Capital Gains
For those clients considering the philanthropic disposition of property for purposes of conservation, the following is being contemplated.
Extension of provision encouraging contributions of capital gain real property for conservation purposes. The bill extends for two years (through 2011) the increased contribution limits and carry forward period for contributions of appreciated real property (including partial interests in real property) for conservation purposes.
To be continued…
Your friends at…
Boston Elder Law Attorneys
Raynham Elder Law Attorneys
Andover Elder Law Attorneys
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