Gould Cooksey Fennell, P.A.
2010 Tax Act
As you may already know, President
Obama signed H.R. 4853, The Tax Relief,
Unemployment Insurance Reauthorization
and Job Creation Act of 2010 (the “2010 Tax
Act”) on December 17, 2010. While the 2010
Tax Act was quite comprehensive in scope
affecting numerous income tax provisions,
this new legislation dramatically changed the
estate and gift tax landscape.
The following is a summary of the key
components of the estate and gift tax
implications of this new law, which are
applicable for 2011 and 2012 only:
1. Estate Tax Issues:
• The Estate Tax Exemption and Rate:
Estates in excess of $5 million (per
individual and indexed for inflation starting
2012) will be subject to a top estate tax rate
of 35 percent.
• Portability of Estate Tax Exemption: The
general rule is that, starting in 2011, any
unused estate tax exemption of a decedent
may be applied to the surviving spouse’s
estate to be used upon the surviving
spouse’s death. The portability of the
exemption requires that an election be made
on the deceased spouse’s estate tax return
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and, as with most new laws, is subject to
numerous exceptions and ambiguities. It is
important to recognize that this portability
only applies to deaths that occur after 2010.
2. Gift and Generation Skipping provide the advantages of estate planning
Transfer (GST) Tax Issues:
• The Gift Tax and GST Tax Exemption and
Rate: The gift tax rate and GST tax rate for
2011 and 2012 will remain at 35 percent
with a new lifetime gift tax exemption of
$5 million and GST tax exemption of $5
million (both adjusted for inflation starting
in 2012).
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• Portability of the Gift Tax Exemption:
Starting in 2011, surviving spouses may
apply any unused exemption from their last
deceased spouse to gifts made during their
lifetime. Again, this portability only applies
to deaths that occur after 2010 and does not
apply to the GST tax exemption.
The most significant advantage of these
new laws is the temporary increase in the
lifetime gift exemption and GST exemption
to $5 million (or $10 million for a married
couple). Clients should consider taking
advantage of the increased exemptions and
lower tax rates before 2013 when these new
laws will expire.
A practical concern raised by these new
provisions is that clients may be lulled into
complacency due to the size and portability
of the current tax exemptions. It is important
to recognize that simple portability does not
structures that are specifically designed to take
advantage of the estate tax exemption and
future appreciation of assets placed in a trust
created to maximize the benefit of the estate
tax exemption. Failure to create an estate plan
that utilizes the remaining exemption in the
most tax efficient manner could be very costly
for a decedent’s family.
Take Advantage of
Florida’s Homestead
Laws and Today’s
Low Values
Most Florida homeowners have experienced a
significant decline in the value of their homes from
the levels seen during the recent housing boom. For
2010, property values were substantially deflated.
As a result, we are encouraging our clients, this
year, to take a close look at the assessed value of
their home to ensure full advantage of Florida’s
homestead laws limiting annual assessment increases
for homestead property to the lesser of 3%, or the
increase in the CPI. The assessed value of your
home will be identified in the TRIM notice mailed
to all property owners by the Property Appraiser’s
office in August of each year. By obtaining the
lowest possible assessed value for your home, you
may be able to capture very meaningful savings on
your property tax payments for future years because
of the homestead cap that limits annual assessment
increases from that potentially lower base value.
Additionally, because of Florida’s unique homestead
tax portability laws, you may be permitted to transfer
your tax savings to your new home should you sell
your current residence.
 Attorney Spotlight PRESORTED
FIRST CLASS MAIL
David M. Carter chairs GCF’s Personal Injury and Wrongful U.S. POSTAGE
Death Group. He has litigated many significant cases on PAID
behalf of GCF clients involving catastrophic injuries caused by 979 Beachland Boulevard VERO BEACH, FL
automobile accidents, nursing home abuse, medical mistakes and Vero Beach, FL 32963 PERMIT NO. 36
defective products. He is also a member of the firm’s Probate
Litigation Group. In that capacity he has served as trial counsel www.gouldcooksey.com
in substantial probate matters for the firm, one of which led to
a favorable ruling in favor of a GCF client by Florida’s Supreme
Court.
For the last decade, Mr. Carter has served on the Board of Directors of the Florida
Justice Association and has chaired and spoken at continuing legal education seminars. He
is a member of the Trial Lawyers Section of the Florida Bar, and was recently appointed by
the Governor to serve on the 19th Judicial Circuit’s Judicial Nominating Commission. Mr.
Carter maintains an “AV” rating as designated by Martindale-Hubbell, is a “Super Lawyer”
as named by Law & Politics Magazine and is listed in Law Dragon as one of the Leading
3000 Attorneys in America.
For more information about David Carter or any other GCF attorney, please visit
www.gouldcooksey.com

GCF’s Finance & Institutional

Lending Group
Sandra G. Rennick of GCF’s Finance & Institutional Lending Group frequently assists
both lenders and business clients with the restructuring of commercial loans. In our current
economic environment, considerations of expediency, cost efficiency and practicality are
of equal importance to standard lender underwriting requirements. Ms. Rennick strives to facebook.com/gouldcooksey
employ creative solutions which are superior to traditional refinancing methods, in many
instances relieving borrowers of considerable closing expenses. DAVID M. CARTER ■ BRIAN J. CONNELLY ■ BYRON T. COOKSEY ■ TODD W. FENNELL
Anthony P. Guettler ■ TROY B. HAFNER ■ WILLIAM N. KIRK ■ CHRISTOPHER H. MARINE
JASON L. ODOM ■ EUGENE J. O’NEILL ■ Christopher K. Pegg ■ SANDRA G. RENNICK