“Tax Hike Prevention” Act of 2010 introduced in Senate

Pending Legislation

The Tax Hike Prevention Act of 2010 was introduced in the Senate on September 13 as Senate Bill 3773 “to permanently extend the 2001 and 2003 tax relief provisions and to provide permanent AMT relief and estate tax relief, and for other purposes.”
Highlights of the proposed Estate Tax Relief Provisions include:
1. To be effective beginning January 1, 2010 with respect to decedents dying on or after that date; and beginning on January 1, 2011 with respect to gifts made and generation-skipping transfers on and after that date.
2. Reunification of the Gift Tax and Estate Tax Unified Credit Equivalent Amount to $5 million and the amount is indexed for inflation.
3. Top Marginal Rate of Gift, Estate and Generation-Skipping Transfer Tax of 35%.
 4. “Portability” of decedent’s unused Unified Credit by election of the executor of the decedent’s estate to pass the unused portion to the surviving spouse.
 5. Special election available for decedents dying in 2010 to apply existing 2010 law rather than the Tax Hike Prevention Act of 2010.
Thanks to attorney David Cahoone of Sarasota, Florida for this update.
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