Are Families Who Took Advantage of the Temporary Increase in the Unified Credit for Estate and Gift Taxation Purposes in for a Very Unpleasant Surprise after 2025?

Are Families Who Took Advantage of the Temporary Increase in the Unified Credit for Estate and Gift Taxation Purposes in for a Very Unpleasant Surprise after 2025?

Gift Tax
By Anthony Diosdi Estate and Gift Tax 101On December 31, 2012, President Obama signed the Economic Growth and Tax Relief Reconciliation Act exempting $5,120,000 (indexed for inflation) from estate and gift taxes, and the generation-skipping transfer taxes (“GST”). The Tax Cut and Jobs Act of 2017, the current law signed by President Trump on December 22, 2017, essentially doubled the transfer tax exemptions from $5 million to $10 million, indexed for inflation. The Tax Cuts and Jobs Act of 2017 currently excludes $11.4 million of assets from estate and gift taxes of a U.S. citizen or resident. However, many of the provisions of the Tax Cut and Jobs Act of 2017 are scheduled to expire on December 31, 2025. This means that on January 1, 2026, the estate and gift…
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New York Estate of Mind

New York Estate of Mind

Tax Law
By James Huang Ranked among the highest taxing jurisdictions in the country, New York is one of the few states that also has a state-level estate tax. Ranging from 3.06% to a top rate of 16%, New York's estate tax is imposed on decedents domiciled in New York. This tax is also imposed on those who are not New York domiciliaries, but who own real or tangible personal property located in the state. Described below are some of the key features of New York's estate tax and how these features interact with the federal regime. Exclusion Gap Like the federal estate tax, New York's estate tax allows estates a "basic exclusion amount" (BEA) — i.e., an amount up to which a decedent's estate is not subject to estate tax. Historically,…
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Part Time Lovers- International Tax Attorneys and the Estate and Gift Tax

Part Time Lovers- International Tax Attorneys and the Estate and Gift Tax

Tax Law
By Anthony Diosdi International taxation from the U.S. federal tax perspective is traditionally divided into two primary topics, inbound foreign investment by nonresident aliens and foreign entities, and outbound investment by U.S. persons and corporations. In the individual foreign investor setting, inbound planning often requires a balancing of U.S. income tax considerations on one hand and U.S. federal estate and gift tax considerations on the other. As a result, for many foreign direct investors, the most important tax consideration is the U.S. federal estate tax and gift taxation. The federal estate and gift tax ranges from 18 percent to 40 percent of a U.S. estate. See IRC Section 2001(c). A non-U.S. resident’s gross estate is composed of U.S. situs property at either the time of the transfer or the time…
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