The California Senate has recently introduced a bill which would impose a California gift, estate and generation skipping transfer tax beginning on 1 January 2021 on all gratuitous transfers during the life and upon death of a California resident, law firm Baker McKenzie has revealed.

Under the proposed California law and similar to the federal transfer tax law, all California transfer taxes will be imposed at a rate of 40 percent. However, unlike the federal transfer tax system providing for a basic exclusion of $11,400,000 which is adjusted for inflation, the proposed California law would provide for a more limited exclusion of...