Wills, Trusts & Estates Prof Blog

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

A Member of the Law Professor Blogs Network

Monday, November 12, 2012

And Its Gone, Experts Predict That Lifetime Gift and Estate Tax Exemption Will Expire

Gift TaxFollowing the re-election of President Barack Obama, it has now come time to address the issue of what his administration and the new Congress will do with the lifetime gift and estate tax exemption. President Obama has previously suggested that he would like the new lifetime exemption to be set at $3.5 million with a tax rate of 45% on income that exceeds the exemption. While it is still uncertain on how President Obama or the new Congress will act, it is likely that the $5.12 million lifetime exemption will expire at the end of the year. That is why every couple or individual with more than $2 million in asserts might want to strongly consider taking advantage of this once in a lifetime offer. As I have previously discussed, married couples can make gifts upwards of $10.24 million tax-free. In addition, this is an excellent opportunity to transfer property that is likely to appreciate in value. The appreciated value of property will pass under the lifetime gift and estate tax exemption without incurring a tax. Finally, for those who are concerned with gifting large amounts of property, the person making the gift can still "impose conditions and controls so gifts aren't squandered."

See Robert W. Wood, Grab the $5M Gift and Estate Tax Perk: It's Gone In 2013, Forbes, Nov. 10, 2012.

Special thanks to Jim Hillhouse (Professional Legal Marketing (PLM, Inc.)) for bringing this article to my attention.

http://lawprofessors.typepad.com/trusts_estates_prof/2012/11/and-its-gone-experts-predict-that-lifetime-gift-and-estate-tax-exemption-will-expire.html

Current Affairs, Estate Tax, Gift Tax | Permalink

TrackBack URL for this entry:

http://www.typepad.com/services/trackback/6a00d8341bfae553ef017c335fb3f5970b

Listed below are links to weblogs that reference And Its Gone, Experts Predict That Lifetime Gift and Estate Tax Exemption Will Expire:

Comments

Post a comment