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ARTICLE · 19 JULY 2013

Estate Planning Update - July 2013

Day Pitney LLP
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Because of the uncertainty over the future of the federal estate, gift and generation-skipping transfer (GST) tax exemptions through the end of last year, many individuals made significant taxable gifts to trusts for their families in an attempt to capture the then current $5,120,000 federal exemption amounts before a possible decrease.

United StatesTax
Day Pitney LLP
Day Pitney LLP
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FOLLOW-UP TO 2012 GIFTING

Because of the uncertainty over the future of the federal estate, gift and generation-skipping transfer (GST) tax exemptions through the end of last year, many individuals made significant taxable gifts to trusts for their families in an attempt to capture the then current $5,120,000 federal exemption amounts before a possible decrease. As it turned out, those higher exemptions were in fact made permanent by the American Taxpayer Relief Act of 2012, signed into law on January 2, 2013. Now that the dust has settled on these gifts, it is appropriate to review a few planning notes.

  • Trust Assets. Some of the trusts established at the end of last year were funded with cash, which made the initial transfer simpler and ensured the transfers would be completed before year end. In those cases, this is an appropriate time to review the trust's investments. In many cases, it may be advantageous to "pool" the trust's investment assets with similar

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