The American Taxpayer Relief Act of 2012 was signed by the President on January 2. It has already been called a major tax increase by some and a major tax cut by others. Which view is correct depends on how you look at it. The increases are considerably lower than what would have been in store if Congress had simply failed to act and the nation plunged off that fabled "fiscal cliff."

Many may debate the merits of this legislation in the context of broader deficit reduction, but the law has at least provided a sense of permanence and clarity that was missing for nearly a dozen years. While the changes make our tax code even more progressive, some of the things wealthy taxpayers most feared did not happen. Your U.S. Trust advisor can review your estate plan in light of the new stipulations, and identify potential planning opportunities.