Feb 1, 2011 12:00 PM

Tax-planning strategies that make the most sense in light of the changing rates

By Christopher R. Hoyt

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010,¹ among other things, ended the nail-biting uncertainty about the estate tax thresholds for 2011. (For more information, see “New Rates, New Exemptions, New Opportunities,” in this issue, p. 20.) Signed into law on Dec. 17, 2010, this $858 billion tax legislation² also gave taxpayers a two-year income tax reprieve by extending into 2011 and 2012 the lower income tax rates and many of the other tax incentives that were enacted in 2001 and 2003 (the Bush tax cuts).³

Although taxpayers have temporary tax relief for the next two years, a sizeable tax hike is on the books for 2013. (See “Income Tax Rates,” p. 17.) Not only will the Bush tax cuts expire, but also there will be new income taxes to pay for health care costs. Individuals who have over $200,000 of adjusted gross income ($250,000 on married joint returns) will incur an additional 3.8 percent tax on most investment income and an additional tax of 0.9 percent on earned income from wages and self-employment.

Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

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Topics of Interest

Estate Tax	Donor Advised Funds
GSTs	Family Offices
Private Foundations	Life Insurance
2010 Tax Act News	Industry Trends Surveys

E-Newsletter Signup

2011 Trust Glossary

Click here to download the 2011 Trust Glossary

50 Years Ago This Month

Click here to read the issue.

50 years ago, in May 1962, we featured articles such as: "Future of Canadian Trusteeship" by Arthur H. Mingay", "Training Trust Employees" by Ian M. Marr, "What is a Trust Officer?" by Eric J. Brown, and "Selling Services" by Donald I. Webb.

Conrad Teitell's Guide to Tax Benefits For Charitable Gifts

Click here to view the most up to date guide (September 2011)

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