Bloomberg BNA's Daily Tax Report spoke with Beth Shapiro Kaufman about the prospects of the Obama administration estate tax budget proposals advancing in the current Congress. One provision would require a minimum term of 10 years for grantor retained annuity trusts, and another would increase the estate tax rate and decrease the exemption amount. For the complete article, please visit Bloomberg BNA's website (subscription required).
Excerpt taken from the article.
"Once you get a proposal that's a revenue raiser that has been developed to that level, the odds are it will keep coming up," Beth Kaufman, an attorney with Caplin & Drysdale , told BNA July 3. "It's kind of on people's short list."
Introduction is a far cry from enactment, however. "I just don't see estate and gift tax as being a big legislative area now," Kaufman said.
The new rates would be effective for estates of people dying, or transfers made in 2018—after Obama has left office—making it not much of a revenue raiser for his administration.
"This is just staking out a position," Kaufman said. "I really don't think they are going to come back to rates and exemptions in this presidency, period."