Practical Planning and Drafting Until Congress Makes Up Its Mind About the Estate Tax

Practical Planning and Drafting Until Congress Makes Up Its Mind About the Estate Tax M. Read Moore, Esq. February 23, 2006 TABLE OF CONTENTS
I.	INTRODUCTION		1
II.	IMPORTANT PROVISIONS OF EGTRRA		2
	A.	Estate Tax Provisions	2
	B.	Repeal of the State Death Tax Credit	2
	C.	Gift Tax Law Changes	3
	D.	GST Tax Provisions	3
	E.	Basis Rules	4
III.	THE IMPACT OF THE INCREASES IN THE GIFT TAX APPLICABLE EXCLUSION AMOUNT AND THE GST EXEMPTION		4
IV.	SHOULD CLIENTS PAY GIFT TAX ON LIFETIME TRANSFERS?		6
V.	USE THE INCREASED GIFT TAX APPLICABLE EXCLUSION AMOUNT		7
VI.	WHEN CLIENTS RUN OUT OF EXEMPTION – GIFTS WITHOUT GIFT TAX		10
	A.	Introduction	10
	B.	Use Grantor Trusts	10
	C.	Zeroed-Out GRATs and CLATs	22
	D.	Intra-family Loans and Sales	26
VII.	THE CHANGING STATE DEATH TAX SCENE		30
	A.	Introduction	30
	B.	State Responses to Congress' Theft	31
	C.	A Cornucopia of State Death Tax Systems	32
	D.	Estate Planning in the New World	36
	E.	Lifetime Planning for State Death Tax Purposes	40
APPENDIX			44