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News & Info - EGTRRA - DON'T BE FOOLED!!!

When President Bush signed the Economic Growth Tax Relief Reconciliation Act of 2001 (EGTRRA) on June 7, 2001, your estate plan was changed without your permission. This is a most complicated law.

Don't think the federal estate tax is going away any time soon. Even if the federal estate tax actually abates when the year 2010 rolls around, the law reinstates today's tax scheme in full on January 1, 2011, as if the "repeal" had never happened. In the meantime during the year 2010, the law inflicts onerous asset basis carryover rules. This means that special planning will have to be done to avoid as much as possible the capital gains taxes that your loved ones will have to endure. Also, don't forget to keep very careful records of all your stock, bond, and other asset trades, because meticulous records will be absolutely essential to navigate the treacherous EGTRRA basis rules!

In addition, the federal gift tax NEVER goes away under this bill.

DON'T BE FOOLED. You may get hammered! It is more important than ever to contact your estate planning professional to review your plan and make sure your plan is adjusted to coordinate with the new tax provisions! Call today for a free consultation about how EGTRRA affects YOU!