Bloomberg Quotes Beth Kaufman on Proposed Estate and Gift Tax Changes

Bloomberg BNA's Daily Tax Report spoke with Beth Shapiro Kaufman concerning the Obama administration's estate and gift tax proposals in the fiscal year 2015 budget plan, including one that will limit the use of the annual exclusion to exempt gifts in trust from the gift tax.  The proposal was initiated by the government's concern that Crummey withdrawal rights are being abused, but the proposal also has some benefits for taxpayers. For the complete article, please visit Bloomberg BNA's website.
 
Excerpt taken from the article. Reproduced with permission from Daily Tax Report, 43 DTR GG-9 (March 5, 2014). Copyright 2014 by The Bureau of National Affairs, Inc. (800-372-1033) <http: /www.bna.com>.
 
The new category that would be created may be designed to be separate from the $14,000 annual exclusion, Beth Kaufman, a member of Caplin & Drysdale, told Bloomberg BNA March 4.
 
"It seems to be saying this new $50,000 exclusion is separate from the $14,000," Kaufman said. "It's possible to read this as that you can both make $14,000 annual gifts to people, and put $50,000 in trust for them."
 
Also included was the administration's proposal to roll back estate, gift and generation skipping transfer tax rates to the rates in effect in 2009. Both Kaufman and Aucutt said it has no chance of passage. It would go into effect in 2018, after Obama has left office.