• The Current State of the Estate Tax: Gift Opportunities In 2010
  • September 9, 2010
  • Law Firm: Thompson Knight LLP - Dallas Office
  • Since the repeal of the federal estate and generation skipping transfer tax effective January 1, 2010, this has been a year of uncertainty for estate planning. As 2010 progresses with no estate tax legislation, it is becoming increasingly likely that Congress will not act prior to the end of the year. If Congress does not act, the estate and generation skipping transfer tax will be reinstated with a $1,000,000 exemption amount and a tax rate of up to 55% effective January 1, 2011. Although there is no federal estate or generation skipping transfer tax for 2010, the federal gift tax remains applicable at a rate of 35% for individuals who have exceeded their lifetime exemption amount of $1,000,000. The maximum gift tax rate will also increase to 55% effective January 1, 2011.