Estate Planning Alert
August 16, 2011
The Budget Control Act that became effective on August 2, 2011 calls for the formation of a new Joint Committee charged with crafting legislation to reduce the deficit that will be voted on prior to the end of 2011. The specific form deficit reduction will take is unknown, but possibilities include previously proposed legislation that eliminates or severely restricts the effectiveness of several gift and estate planning tools commonly used, such as valuation discounts, short term GRATs or very long-term trusts for family members. In addition, new changes affecting estate or income tax planning opportunities might be proposed in the Joint Committee report that is due no later than November 23 of this year. Any of these changes might be effective from date of proposal.
If you are considering making substantial gifts and would like to take advantage of valuation discounts, GRATs or very long-term trusts for family members, you should consider acting now. With all of the proposals and possibilities being considered, it is important to consult with your tax, legal and financial advisers regularly.