Introduction

As the New Year arrived on January 1 with confetti and champagne, so did a very significant change in U.S. tax law: the temporary repeal of the federal estate tax and the generation-skipping transfer (“GST”) tax laws. Although some would see this as another cause for celebration, for many the repeal will create more problems than it solves. In addition, the repeal of the estate and GST tax laws — even though under current law it will only last for one year — requires most individuals to consider whether their wills and trusts still operate as planned or instead leave their beneficiaries facing unintended consequences. This Alert describes the new estate and GST tax landscape so clients can consider what steps they may want to take in order to avoid any unintended consequences.