On December 17, 2010, President Obama signed into law a two-year tax compromise for gift, estate and GST taxes. This unprecedented two-year window provides a significant opportunity for wealth transfer at a reduced tax cost. Clients should consider taking advantage of the new gift, estate and GST tax laws in 2011 and 2012 as there is no certainty that such laws will be extended beyond their current expiration date of December 31, 2012.
This Paul Hastings Client Alert focuses on the changes to the gift, estate and GST tax law under the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the 2010 Tax Relief Act) signed into law by President Obama on December 17, 2010.
Although most actions can or should be deferred to 2011 or 2012, certain actions may require completion by December 31, 2010.