Mar 1, 2011 12:00 PM

By Robert F. Sharpe, Jr., president of The Sharpe Group, Memphis, Tenn.

The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (2010 Act) created a major change that came as a surprise to many observers: the “reunification” of the federal gift and estate tax systems. Since 2002, the gift and estate tax exemption amounts had been “decoupled.” This meant, for example, that in 2009, the $1 million an individual could give to others free of tax during his lifetime was significantly less than the $3.5 million that could be transferred tax-free at death.

The 2010 Act brought the two systems back into alignment. It's now possible to give up to $5 million tax-free to others during lifetime or at death. If a decedent has used the $5 million exemption during his lifetime, no additional exemption is available at death. Under new portability provisions, however, a spouse may be entitled to use any of a predeceased spouse's unused exemption without the use of trusts or other special planning.

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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