2010 Tax Relief act – 2 notable omissions provide continuing opportunities

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Abstract: The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 is notable not only for the changes it made, but also for those it omitted to make. It did not, for example, adopt proposals that would have reduced the tax-saving opportunities inherent in grantor retained annuity trusts (GRATs), family limited partnerships (FLPs) and family limited liability companies (FLLCs). But there’s no guarantee that Congress won’t revisit these proposals in the future. Plus these strategies may be even more powerful while the gift tax exemption is $5 million. So, as this article explains, those considering setting up a GRAT, FLP or FLLC may find that it’s a good idea to do so sooner rather than later.