Close X
Attorney Spotlight

What colorful method does Claire Miley use to keep up with the latest healthcare regulations as they relate to proposed transactions? Find out more>

Search

Close X

Experience

Search our Experience

Experience Spotlight

On December 1, 2016, Parker Hannifin Corporation and CLARCOR Inc. announced that the companies have entered into a definitive agreement under which Parker will acquire CLARCOR for approximately $4.3 billion in cash, including the assumption of net debt. The transaction has been unanimously approved by the board of directors of each company. Upon closing of the transaction, expected to be completed by or during the first quarter of Parker’s fiscal year 2018, CLARCOR will be combined with Parker’s Filtration Group to form a leading and diverse global filtration business. Bass, Berry & Sims has served CLARCOR as primary corporate and securities counsel for 10 years and served as lead counsel on this transaction. Read more here.

CLARCOR
Close X

Thought Leadership

Enter your search terms in the relevant box(es) below to search for specific Thought Leadership.
To see a recent listing of Thought Leadership, click the blue Search button below.

Thought Leadership Spotlight

Securities Law Exchange BlogSecurities Law Exchange blog offers insight on the latest legal and regulatory developments affecting publicly traded companies. It focuses on a wide variety of topics including regulation and reporting updates, public company advisory topics, IPO readiness and exchange updates including IPO announcements, M&A trends and deal news.

Read More >

Tennessee Likely to Repeal Death and Gift Taxes

Publications

April 3, 2012

The Tennessee General Assembly appears ready to eliminate Tennessee's inheritance tax (the so-called "Death Tax") as well as its gift tax. The purpose of this dramatic legislation is to make Tennessee a more attractive state for economic growth and to prevent drivers of this growth from moving away from Tennessee to other states with more beneficial tax structures. The bills eliminating the taxes have not yet been presented to Governor Haslem, but it appears likely that they will be soon, and the Governor is expected to sign them.

Tennessee Inheritance Tax. Under current law, Tennessee imposes an inheritance tax on the estates of all persons residing in Tennessee and on the estates of non-residents who own property in Tennessee. Every estate has a $1 million exemption. Estates in excess of $1 million are taxed on a graduated basis, with the tax on the first $440,000 being $30,200 and any excess over $1,440,000 being taxed at 9.5 percent. The new legislation gradually repeals the inheritance tax over the next four years with complete repeal for persons dying in 2016 and thereafter. Prior to 2016, the exemption will increase to $1.25 million for persons dying in 2013, $2 million for persons dying in 2014 and $5 million for persons dying in 2015.

Tennessee Gift Tax. In addition to being one of the minority of states with an inheritance tax, Tennessee is currently one of only two states with a gift tax. Unlike the inheritance tax, there is no $1 million exemption. Accordingly, the Tennessee gift tax generally applies to gifts in excess of $13,000. The expected legislation will call for the complete repeal of Tennessee's gift tax for gifts made on or after October 1, 2012.

Estate Planning Considerations. As the federal estate tax exemption has increased over the past 10 years (it is currently $5,120,000 per person), fewer people have needed to worry about federal estate taxes. With an exemption of only $1 million per person, however, Tennesseans still needed to plan for the Tennessee inheritance tax. In addition, people were frequently surprised to find that they owed Tennessee gift tax on gifts that were free from federal gift tax.

If the new legislation is enacted as expected, it will eliminate concern about Tennessee's gift tax this fall and gradually eliminate concern about Tennessee's inheritance tax over the next four years. In the meantime, though, the gradual repeal of the inheritance tax over the next four years presents some interesting issues. In addition, many people have executed wills in recent years that establish trusts intended to deal specifically with the Tennessee inheritance tax. These trusts will not be needed after 2016. This should allow many people to simplify their estate plans.

Regarding gifts, anyone planning to make a gift this year would be wise to consider waiting until October to avoid this tax.

People should review their estate plans with their estate planning advisors to insure their plans take advantage of these significant changes in Tennessee's tax laws and to insure that any prior planning does not produce unanticipated consequences as a result of these expected changes.


In Case You Missed It:

Related Services

Notice

Visiting, or interacting with, this website does not constitute an attorney-client relationship. Although we are always interested in hearing from visitors to our website, we cannot accept representation on a new matter from either existing clients or new clients until we know that we do not have a conflict of interest that would prevent us from doing so. Therefore, please do not send us any information about any new matter that may involve a potential legal representation until we have confirmed that a conflict of interest does not exist and we have expressly agreed in writing to the representation. Until there is such an agreement, we will not be deemed to have given you any advice, any information you send may not be deemed privileged and confidential, and we may be able to represent adverse parties.