Resource Center

By: Matthew T. McClintock, J.D.

We all know by now that ATRA 2012 provided the first permanent transfer tax law in more than a decade. The federal estate, gift, and GSTT exemption amounts are now set at $5.25 million per individual in 2013 and taxable transfers are taxed at the rate of 40%. Married couples (as defined for federal tax purposes) receive DSUEA portability as part of this permanent structure. For our friends who live in states with separate transfer tax structures, perhaps not much has changed. Several jurisdictions still impose a state estate or inheritance tax (or both) with exemptions much lower than the federal exclusion amount. So even if clients don’t have federal estate tax liability, state transfer tax planning can be a compelling motivator.

But amid the din of transfer tax discussions, it’s essential to not lose sight of the income tax planning opportunities that remain. Under ATRA 2012 income tax planning has become more important, and the opportunities will impact far more families.

To read more about post-ATRA planning considerations, please complete the form below.