Part III of this series on the Pennsylvania inheritance tax deals with the taxation of future interests, the sole use trust election, the family exemption and the early payment discount.
Inheritance Tax Treatment of Gifts
They call it the American Taxpayer Relief Act. Funny, that. Overall it produces tax increases - that's relief?
The 2010 Tax Act created significant but temporary reductions in estate and gift taxes. The estate and gift tax exemption amount of $5.12 million plus lower tax rates have created opportunities for individuals to transfer wealth and save thousands or even millions of dollars in taxes - but only through December 31, 2012. By its terms, the 2010 Tax Act will sunset after December 31, 2012, the estate and gift tax exemption is scheduled to revert to $1 million on January 1, 2013 and the maximum estate tax rate will increase from 35% to 55%. What Congress does after that date is anybody's guess. It is impossible to predict.