Planning Matters | Sharpe Group
Posted January 1st, 2000

Planning Matters

Editor’s note: In this issue we introduce “Planning Matters,” a new monthly Give & Take column. This new column will feature a broad range of gift and estate planning topics, including ideas, developments, and tax issues that affect all those involved in charitable gift planning efforts. We trust you will find this and upcoming “Planning Matters” columns informative and useful.

The next step in the planned phase-in of gift and estate relief provided for in the 1997 Tax Act will be ushered in with the New Year. The 1997 Taxpayer Relief Act provided for the expansion of the unified gift and estate tax over a nine-year period of time from a $600,000 exemption equivalent to $1 million for individuals and from $1,200,000 to $2 million for couples.

For the year 2000, the amount increases from $650,000 from $675,000. The estate tax exemption gradual phase-in is scheduled to be completed by 2006. The chart below details the amount that can be given tax-free or at death to family and friends each year.


In addition to the above amounts, remember there is also an unlimited deduction for qualified gifts to spouses or charities at death. Apart from the unified credit provisions, up to $10,000 (known as the “annual exclusion amount”) may be given to any number of persons each year. The 1997 Act provided that this amount would be indexed for inflation to the nearest $1,000. No adjustments have yet been made in the $10,000 amount, as inflation has been relatively low since 1997.
From a charitable gift planning point of view, this gradual phase-in provides a number of opportunities to encourage donors to review and revise their gift and estate plans in light of changes in the nation’s tax laws.

Print Friendly, PDF & Email

The publisher of Sharpe Insights is not engaged in rendering legal or tax advisory service. For advice and assistance in specific cases, the services of your own counsel should be obtained. Articles in Sharpe Insights may generally be reprinted for distribution to board members and staff of nonprofit institutions and other non-donor groups. Proper credit must be given. Call for details.

Sharpe Insights

Site Search

Sharpe Insights Archives

2024 Issues 2023 Issues 2022 Issues 2021 Issues 2020 Issues 2019 Issues 2018 Issues 2017 Issues 2016 Issues 2015 Issues 2014 Issues 2013 Issues 2012 Issues 2011 Issues 2010 Issues 2009 Issues 2008 Issues 2007 Issues 2006 Issues 2005 Issues 2004 Issues 2003 Issues 2002 Issues 2001 Issues 2000 Issues 1999 Issues 1998 Issues 1997 Issues