2010 Tax Relief Act Alters Estate and Gift Taxes: GST Tax Changes

The 2010 Tax Relief Act made many beneficial changes to the rules regarding estates and gifts. One such change regards the GST (generation-skipping transfer tax).  The GST is an additional tax on gifts and bequests to grandchildren when their parents are still alive. The 2010 Tax Relief Act lowers GST taxes for 2011 and 2012 through raising the exemption amount from $1 million to $5 million (as indexed after 2011) and reducing the rate from 55% to 35%.

Please call our office for any questions regarding this change to the tax rules.

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