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Article: Flexibility remains the key to effective estate planning after EGTRRA. (Estate Planning).(Economic Growth and Tax Relief Reconciliation Act )(Column)
- Article from:
- National Underwriter Life & Health-Financial Services Edition
- Article date:
- March 4, 2002
- Author:
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On June 7, 2001, the Economic Growth and Tax Relief Reconciliation Act of 2001 was enacted which, through 2009, provides for reduction in maximum tax rates, increased exemptions from taxes, and repeal of the estate tax in 2010. What are the implications of this law for estate planning?
Of significant note is the new law's "sunset" provision, which causes the law to expire on Dec. 31, 2010, and effectively reinstates the wealth transfer tax system as it existed prior to its enactment. Furthermore, even if the estate tax repeal is extended, various taxes will remain payable at death.
Consider the impact of carry-over basis and capital gains tax; ...