The IRS has released proposed rules that will benefit wealthy individuals who wish to pass on their money.
According to Forbes:
Let the gifting begin! The Trump tax cuts bestowed a huge gift on the rich—a doubled estate and gift tax exemption—but it’s temporary, and there was unease as to whether gifts would be taxed later when the exemption fell. Now the Internal Revenue Service has come out with proposed rules saying that there is no clawback on these lifetime gifts. It means that the rich can now pass on tens of millions of dollars estate, gift and GST-tax free, without fear of later being taxed.
“Treasury has just confirmed that the increased estate and gift tax exemption is ‘a use it or lose it proposition,’” says Larry Heller, an estate lawyer with Greenberg Traurig in Los Angeles. This is important not only for avoiding the 40% gift and estate tax, but also the 40% generation-skipping transfer tax exemption, Heller says, noting that it preserves the $11 million-plus exemption not only for children but for grandchildren and several generations thereafter.
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