Estate & Gift Tax Issues

The Federal estate and gift taxes were combined several years ago into one tax known as the unified transfer tax. Unlike income tax, the unified transfer tax was computed cumulatively by adding all taxable gifts and transfers during one's lifetime along with the transfer of one's estate at death being the final gift or transfer.

Recently there have been dramatic changes in the estate and gift tax laws and the relationship between estate and gift taxes have been "decoupled" to a certain degree. Additionally several changes are scheduled for many years to come. This makes long range estate and gift planning very difficult for most individuals. To further complicate matters, each individual has different wishes concerning gifting to family and charities along with their wishes concerning their estate.

There are several strategies which can be used to achieve the lowest tax possible while simultaneously fulfilling the desire to transfer one's assets to the intended donees.

Given the uncertainy the tax law along with the changes in life situations, periodic evaluation of one's estate plans is well advised.