Department of Treasury Releases Estate Planning Guidelines

The Treasury Department recently published its Priority Guidance Plan, which addresses areas like estate, trusts, and gifts. These items were described as a top priority by the department. The department also expressed the desire to establish final regulations that would enforce user fees associated with closing letters for estate tax as well as several other changes. For people about to participate in the creation or revision of an estate plan, this article reviews some of the most important changes that you should consider. 


What Parts of the Guidance Plan You Should Know


Some of the most important elements listed in the Priority Guidance Plan include:


  • Consistency between an estate and an individual who acquires property from a deceased individual
  • The extensions of time to allocate generation-skipping transfer tax exemptions
  • How US citizens receive bequests or gifts from expatriates 
  • Restrictions on how estate assets are handled during the alternate valuation period of six months 


New Proposes Regulations


In addition to the above element, the Plan listed the following sections as focus areas for potential ordinances by the Treasury Department:


  • Whether gifts can be included in estates should be excluded from Treasury Regulation Section 20.2010-1(c), which states that alterations to the excludable amount that happen between when a gift is made and the death of the person who makes the gift can result in a excludable amount that is allowable on the date of a gift to exceed that allowable on date of death. 
  • How personal guarantees are addressed as well as the utilization of present value concepts in assessing what claims and expenses are deductible against an estate. Present value concept states that the amount of money today is worth more than the same amount in the future. 
  • Offering guidance addressing the allocation of the generation skipping transfer tax exemption in case the Internal Revenue Service provides relief in accordance with Section 2642(g), which states that the Secretary by regulation shall prescribe such circumstances and procedures under which extensions of time will be permitted to make an allocation of a generation skipping transfer tax exemption or an associated election. 
  • Addressing the meaning of a generation skipping transfer trust in accordance with Section 2632(c), which which states that if any person makes an indirect skip during his or her lifetime, any unused portion of that person’s generation skipping transfer tax exemption shall be allocated to the property transferred to the extent necessary to make the inclusion ratio for such property zero. 
  • Listing ordering rules when a generation skipping transfer tax exemption is used in excess of a transferor’s remaining exemption 
  • Addressing the use of tables utilized by actuarials for annuity valuation as well as assessing interests for life or terms of years and remainder of revisionary interests 


Contact an Experienced Estate Planning Attorney Today


One of the best ways to make sure that your estate plan takes all estate planning issues into consideration is to obtain the assistance of an experienced attorney. Contact Ettinger Law Firm today to schedule a free case evaluation.

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