Wednesday, October 3, 2012
Now is the final call for those wanting to take advantage of the favorable estate tax exemption. As I have previously discussed, if Congress does not extend the Bush era tax cuts, then the exemption will return to the pre-Bush era rates. In other words, the lifetime federal tax exemption for estates and gifts will decrease from $5.12 million to $1 million. The reason that we are likely approaching the deadline for people to take advantage of the exemption is that the time and attention on the part of the attorney to set-up these lifetime gifts is great. As attorney Janet Brewer stated, "[e]ven if a lawyer has time to meet with a client, it's simply too difficult to finish the process in three or four weeks." Ms. Brewer stated that December is far too late. So, if person wishes to take advantage of the estate tax exemption, he or she might want to consider taking to his or her attorney about this issue.
See Charles Passy, Decision Time for Estate Planners As Tax Exemption is set to Expire, Wall Street Journal, Oct. 1, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) and Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.