Robert Keebler on President Obama’s 2014 Budget Proposal

Thanks to generosity of Robert Keebler, CPA, MST, AEP (Distinguished) of Keebler & Associates, LLP, AICPA and Leimberg Information Services, we are pleased to provide to you two free podcasts to download on the subject of President Obama’s 2014 Proposed Budget.

Obama’s proposed budget will have a negative impact on the following planning:

  1. The estate tax rate would increase to 45% from today’s 40% rate.
  2. The gift tax exemption would be reduced to $1,000,000
  3. The estate tax and GST exemptions would be reduced to $3,500,000
  4. The GST period would be limited to 90 years from today’s unlimited period
    1. Current dynasty trust transactions would be grandfathered
  5. The IDGT trust transactions will be eliminated on a prospective basis
    1. Current dynasty trust transactions would be grandfathered
    2. Additional sales would not be protected
  6. The GRAT transaction will be eliminated on a prospective basis
    1. Ten year rule
    2. No zeroing out GRATs
  7. A Buffet rule would impact income greater than $1,000,000
  8. Itemized deductions would be reduced to a credit for those with income greater than $250,000
  9. Carried Interests capital gain treatment would be eliminated
  10. A special provision would eliminate the ability to retain more than approximately $3,400,000 in an IRA or pension plan.

The 90-year GST rule may require some thought and attention. Recall that for pre-1986 GST trusts any contribution after the effective date eliminates grandfather status. It may be prudent to sever/decant/reform insurance and other trusts before the end of 2013 if this provision becomes law.

AICPA Podcast
“Robert Keebler on President Obama’s 2014 Proposed Budget”
DOWNLOAD

LISI’s 60-Second Planner Podcast
“Key Elements of the President’s 2014 Budget”
DOWNLOAD

The podcasts above are the copyrighted materials of Robert S. Keebler, CPA, MST, AEP (Distinguished), AICPA and Leimberg Information Services, Inc. These are provided to you as a courtesy from the permission granted to The Ultimate Estate Planner, Inc. Reproduction in any form or forwarding to any person prohibited without the express permission of AICPA and Leimberg Information Services, Inc.

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