Tax Thoughts for 2011

This post is probably a little late, but, after much bickering at the end of 2010, there is some certainty in our tax code for two more years (until it becomes a political issue again for the next presidential election). It is, consequently, simpler for attorneys and accountants to help individuals with their estate plans.
Here are three of the biggest tax implications for 2011.
(1) The Estate tax. For the next two years, a person can die and avoid federal tax on estates less than $5 million.
(2) Gift taxes. Annually, a person may can exclude gifts of up to $13k per year per donee without detrimental tax consequences. And individuals can make lifetime gifts of up to $5 million and exclude the transfer from tax by filing a gift tax return allocating his or her lifetime gift tax exemption.
(3) The Generational Skipping Tax (“GST”). The GST primarily exists to prevent families from avoiding estate tax in younger generations by skipping a generation and transferring property to the next generation. Individuals can now set up trusts for younger beneficiaries and use a $5M GST  exemption.
Because of the new found clarity in the tax code, it is advisable to consult with accountants and attorneys to begin planning.

Related Articles

Determining a Grantor’s Intent in Trusts

November 4, 2023

When interpreting a trust, the Settlor’s “intent is controlling and such intention must be ascertained primarily from the trust instrument as a whole.” Berezo v. Berezo, 628 S.W.3d 737, 743-44 (Mo. App. E.D. 2021). Because language and circumstances vary, the Court must examine “the specific language as well as the surrounding circumstances.” Matter of TR…

Read More

Successor in Interest, Powers of Attorney

September 21, 2023

The term “successor in interest,” as of this writing, has not been defined in the context of power of attorney litigation. When someone mismanages his/her authority under a power of attorney, the principal, or his/her successors in interest, can file suit. The relevant statute defines “successor in interest”: “For purposes of this section, the principal’s…

Read More

Non-Monetary Claims Against the Estate

August 10, 2023

When an individual dies, there is generally no more than one year from the date of death to make a “claim” against his/her estate. The burden to commence a claim is the responsibility of the claimant. Mo. Highway & Transp. Com’n v. Myers, 785 S.W.2d 70, 73 (Mo. 1990). The general purpose of this deadline is…

Read More

Will Contests, Self-Proving Wills

March 30, 2023

Will contests are unique for several reasons. Perhaps most significantly, the burden is on the proponent of the document to prove the will was executed and that the testator possessed the requisite capacity. Many times the “proponent” of the will is the defendant in the lawsuit. So, the will contest instructions contemplate the defendant presenting…

Read More
Scroll to Top