The Sensible Tax Act of 2011

The IRS released HR 3467, the Sensible Estate Tax Act of 2011 on November 17. Some of the proposals included in the Bill are below:

• Reduce the estate tax exclusion amount to $1,000,000 with a top tax rate of 55% for decedents dying after December 31, 2012
• Extend and make portability permanent
• Restore the credit for state transfer taxes
• Modify rules on valuation discounts and minority interest discounts
• Require a consistency and a basis reporting requirement
• Impose restrictions for GRATS, including
  • A ten year minimum term;
  • A requirement that the annuity payment not be reduced from one year to the next during the first ten years of the term; and
  • A requirement that the remainder interest at the time of the transfer have “a value greater than zero”
• Limit the duration of the GST tax exemption to 90 years after the settlor establishes the trust

To view the Sensible Tax Act of 2011 in its entirety, click here: Download BILLS-112hr3467ih

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this to my attention.