Wednesday, April 24, 2013

Fiscal Cliff Update - Estate, Gift and GST Tax

On January 1, 2013 Congress passed the American Taxpayer Relief Act (the “Act”), which President Obama signed into law on January 2nd in order to avoid the so-called “fiscal cliff.”  The Act permanently extended a number of temporary and expiring tax cuts and has significant impact on estate, gift, and generation-skipping transfer (“GST”) tax laws.  On April 10, 2013 President Obama released his most recent budget proposal, which potentially may impact some of the “permanent” provisions of the Act.  Where applicable, the budget’s impact on the Act is noted below.