OCR Text |
Show Estate planing laws revised The Tax Section and Probate Committee of the Utah State Bar has called attention to the need for person having estate plans to have their plans reviewed by their attorneys. The 1976 Tax Reform Act, recently adopted, contains a major overhaul of estate and gift tax provisions. Some relief from taxation has been provided for small and medium sized estates, while potential taxes on large estates have been increased. Under the new law, estates of persons dying after December 31, 1976, with a fair market value of assets less than $120,000 will escape taxation. Formerly the exemption was $60,000. Under the prior law, a decedent could leave one-half of the estate to a surviving spouse tax free, which coupled with the exemption, increased the tax free estate to $120,000 in value. Under the new law the new marital deduction is one-half of the estate or $150,000 whichever is greater. This could be a major benefit to taxpayers in Utah. Of vital concern, however, is the fact that the gift tax rates will be raised substantially after December 31, 1976, and the lifetime exemption of $30,000 under the existing law will no longer exist separately after December 31, 1976. |