In August, 1997,
President Clinton signed into law the Taxpayer Relief Act of
1997 (TRA97). This law was one of the most wide-sweeping and
(according to many tax experts) most confusing pieces of legislation
One of the most
significant changes to the tax code brought about by TRA97 is the
increase in the Unified Credit.
Credit is the amount of money each individual can give away, either
at death or during your lifetime. For over a decade, the Unified
Credit was set at $600,000, which essentially saved $192,800 of
estate taxes. However, with TRA97, the Unified Credit schedule looked
Decedents Dying and Gifts Made During
With the Taxpayer
Relief Act of 2001, some of these limits were increased even further.
For more details, click here.
The new law
also began increasing the annual $10,000 gift exclusion to account
for inflation. It will rise with the annual inflation rate; however,
there is a catch. Increases are only in thousand dollar increments,
which means any increase in the gift exclusion may not happen for
another couple of years.
Relief Act of 1997 also provided extra estate tax relief for qualified
family-owned businesses and farms. It created the new Roth IRA, which can provide extra tax benefits
(especially for younger investors saving for retirement), as well
as a wide variety of other changes.
More About This Sweeping Legislation
learn more about The Taxpayer Relief Act of 1997 and how it
could affect your own family, contact SaveWealth. Our team
of estate specialists can help you put it all into perspective.
speak with one of our estate tax professionals, please contact us today!