Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

Friday, September 7, 2012

Moves to Make Before 2012 Expires When the Gift Tax Exemption Might Expire Too

Images-5I have previously blogged about how the estate tax is set to expire at the end of 2012.  As a result of this uncertainty, estate planners are seeing a drastic rise in business from clients concerned that the gift-tax exemption will decrease dramatically next year. 

NerdWallet recommends avoiding the rush and consulting a financial planner to create a viable financial plan.  This planning can take several months to complete with valuations of assets and completion of paperwork, so it is best to see a planner as soon as possible.  That way you can put your plan into action before the $5 million gift tax exemption potentially expires.

Also, remember that there are other ways to gift your estate, tax-free.  Individuals can give up to $13,000 to another person per year before gift taxes kick in.  Tuition or medical expenses for others are also tax-exempt if individuals pay them directly to the institution.  Additionally, individuals can still make tax-free gifts to spouses and charitable organizations.

See Ashwin, I’ve Heard The Gift Tax Exemption Is Going To End Soon—Does That Mean I Should Change My Will?, NerdWallet, Aug. 24, 2012. 


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As a practitioner in the T&E field, I would implore any potential clients to consult their attorney sooner rather than later. In fact, TOMORROW!!!!

My colleagues and I have been after our clients to consider these matters for the past 18 months. Of course, many have only recently put it on their radar.

Appraisers are backlogged. Discount valuations can take weeks. And I'm wondering how my small shop can get everything done by end of year.

The simple fact is, it's difficult for me to contemplate we will ever see a landscape more favorable to the high-net-worth taxpayer than the one we've enjoyed over the last two years.

Posted by: Gob Bluth | Sep 27, 2012 6:06:42 PM

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