Bar Group Requests IRS Rules on Generational Wealth Transfers

The IRS should clarify that the wealthy can apply an increased tax exemption to trusts created before 2018 for the benefit of later generations, according to the American Bar Association tax section.

The 2017 tax law temporarily doubled the estate tax exemption. The change means that in 2019 wealthy individuals can transfer up to $11.4 million to beneficiaries without paying estate tax at death, and a married couple can transfer twice that at $22.8 million. The higher exemption can be used to offset generation-skipping transfer taxes, which are incurred when individuals transfer wealth to grandchildren or more remote descendants. ...