Tennessee Repeals Gift and Inheritance Tax

Friday, 11 May 2012 09:53

Within the last several weeks, the Tennessee legislature passed bills that repeal both the Inheritance Tax (effective 2016) and the Tennessee Gift Tax (effective retroactively to January 1, 2012).  Governor Haslam is expected to sign both bills soon.  Currently, the Tennessee Exemption from Inheritance tax is $1 million per person.  That exemption will be increased gradually over the next few years until full repeal occurs in 2016.  The exemption will increase as follows:

2013                            $1.25 million
2014                            $2 million
2015                            $5 million
2016 & forward          No Inheritance Tax

The bill repealing the Tennessee Gift Tax, as introduced, was initially written to repeal the Gift Tax beginning on January 1, 2013.  However, a last minute amendment was passed by both the House and Senate to make the Gift Tax repeal effective January 1, 2012, retroactively.  This, of course, means that if you have already made a taxable gift this year, you will not have to pay Tennessee Gift Tax next April 15.

Both of these bills were the result of a fairly quiet behind-the-scenes lobbying effort that achieved success more quickly than most people anticipated.  Part of the reason for this success was the negotiation by Democrats of a slight reduction in the sales tax on food.  With the addition of this concession, there were few objections to the repeal of either the Inheritance Tax or Gift Tax.

Repeal of the Gift Tax will cost the State of Tennessee approximately $15 million per year in revenue.  The repeal of the Inheritance Tax will cost a much larger reduction in revenue, however, it was argued that this loss in revenue will be made up for by more people staying in Tennessee and attracting new businesses to Tennessee.

Jason Salomon named as Member on Community Foundation Committee

Monday, 23 April 2012 15:18

In February of 2012, Attorney Jason Salomon was named as a Member of the Grants and Initiatives Committee of the Community Foundation of Greater Memphis.

Rob Malin Passes Mississippi Bar Exam

Monday, 23 April 2012 15:17

Attorney Robert D. Malin recently took and passed the Mississippi Bar Exam. He will be licensed upon his taking the oath, currently scheduled for April 26, 2012.

Steve McDaniel Named in Best Lawyers in America 2012

Monday, 23 April 2012 15:14

Stephen McDaniel has been listed in the 2012 edition of The Best Lawyers in America in the practice areas of Litigation - Trusts & Estates and Trusts and Estates.

Congratulations Marjorie Baker Law Firm Partnership

Thursday, 03 November 2011 13:25

On behalf of the equity partners, it is a pleasure to announce that Marjorie Baker has been nominated and approved to be a partner of the law firm. Marjorie has been with the firm for nine years and has worked diligently to strengthen our firm and provide excellent client service. This is a well deserved honor for her.