26

The Transfer Tax System

This chapter gives an overview of the federal transfer tax system, which consists of the federal gift tax, estate tax, and generation-skipping transfer (GST) tax. This system generally is designed so that wealth will be subject to transfer taxation once in each generation. This includes lifetime transfers by gift, transfers at death, and transfers designed to skip generations. Thus, it has been referred to as a unified transfer tax system. However, in their wealth management planning and strategies, planners attempt to at least partially frustrate this objective to the extent allowed by law by avoiding (when possible) or deferring these transfer taxes.

IMPACT OF AMERICAN TAXPAYER RELIEF ACT (ATRA) OF 2012

ATRA is significant ...

Get Private Wealth Management: The Complete Reference for the Personal Financial Planner, Ninth Edition, 9th Edition now with O’Reilly online learning.

O’Reilly members experience live online training, plus books, videos, and digital content from 200+ publishers.