Take Advantage of New Tax Law Opportunities

Allen Silk
January 6, 2011 — 366 views  

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On December 17, 2010 the President signed the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act), temporarily extending the Bush-era temporary tax cuts. This new law creates a limited window for you to take advantage of some new and unique planning opportunities. It also creates a unique tax environment, which imposes on you an obligation to determine whether the new law has any impact on your estate plan.

A Unique Opportunity

One of the provisions of the 2010 Tax Relief Act is the creation of a two-year window of opportunity, during which you may make gifts at unprecedented levels without incurring any gift, estate, or generation-skipping transfer tax. I strongly encourage you to take the time to see if you and your family can benefit from this rare gift from Congress. We can help you structure these gifts to ensure that they meet your goals and objectives.

A Unique Tax Environment
Many estate plans are designed around the federal estate tax exemption equivalent. After the Bush-era temporary tax cuts were enacted, we began to design estate plans that addressed the fact that the federal estate tax exemption equivalent was temporary and uncertain. The 2010 Tax Relief Act does not resolve that uncertainty, but merely creates a two year patch. That makes it more important than ever to review your estate plan to ensure that this new tax law does not have the effect of changing your estate plan.

Please contact one of the members of Stark & Stark's Estates Team today to discuss all of the options available to you and to determine whether any action is necessary during this unique tax environment: 

Allen M. Silk, 609.895.7265, asilk@stark-stark.com

Steven L. Friedman, 609.895.7268, sfriedman@stark-stark.com

Henry E. Van Blunk, 267.907.9607, hvanblunk@stark-stark.com

Jeffrey A. Weiner, 856.874.4443, jweiner@stark-stark.com

Elizabeth Walsh Kreger, 609.895.7300, bkreger@stark-stark.com

Rosemary D. Durkin, 609.895.7314, rdurkin@stark-stark.com

www.STARK-STARK.com

Allen Silk