On August 2, 2011 President Obama signed the Budget Control Act of 2011 (the "debt ceiling bill". This law calls for a new Joint Committee to review year-end tax legislation. New changes might be proposed, not just those in the Budget Control Act. While we don't know what the results of this review will be, it is worth noting that many effective estate tax planning devices could be on the "chopping block." Techniques like short term GRATs, discounted sale transactions, and dynasty trusts have all been previously discussed for restriction or elimination, so it stands to reason that the Joint Committee will reexamine them closely.
What does this mean for you? Quite simply, you must consider acting now on any serious estate tax planning you have been putting off. Time is of the essence. We very well could see tax legislation that goes into effect the day it is signed, leaving us with no chance to implement these effective tax savings devices before the door slams shut. At best it seems we are looking at November 2011, not December 2012 as the next major turning point for estate tax planning.
Bottom line: Act Now. You should consult with your qualified legal and tax advisers as soon as possible to review your estate plan and examine the benefits and drawbacks of the tax savings techniques most likely to be eliminated.
As always, you are invited to contact me directly with any questions or concerns. I am always happy to help.
All the best,
Joe Donlon
The estate planning law firm of Donlon & Associates, PC provides high quality, focused legal counsel to clients of all ages and wealth levels in the following areas:
Wills & Trusts
Asset Protection Planning
Estate Tax Planning
Elder Law
Special Needs Trusts
Probate & Estate Administration
Donlon & Associates, PC serves clients throughout New York City, Long Island, Westchester, and Northern New Jersey. These areas include Nassau County, Suffolk County, Westchester County, Queens, Brooklyn, Manhattan, Staten Island, Hoboken, Jersey City, Hudson County, and Bergen County.
