Changes to the Estate and Gift Tax Under the New Tax ActJanuary 21, 2011 – Articles The Legal Intelligencer
The recently signed Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 extends through 2012 most of the so-called “Bush era tax cuts,” which were originally contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA). With respect to the federal estate tax, generation-skipping transfer tax and gift tax, the act defers for two years the “sunset” of the EGTRRA provisions, but with several significant modifications.
Silow notes “The most dramatic of the changes is the increase in the exemption amount applicable to lifetime gifts. For a married couple, the combined exemption amount for gifts has been increased from $2 million to $10 million.”