The Year of Gifting
- Posted in: Asset Protection
The year 2010 was the
perfect year to die. The estate tax had expired and Congress could not get
itself together in time to reinstate it for that year. Smart people like George
Steinbrenner took advantage of the situation and departed this earth with no
worries about the federal estate tax.
It seems, however, that
you failed to take advantage of this opportunity and instead chose to remain
with us here on earth where politicians love to tinker with taxes. Despite this poor decision on your part,
don’t despair. There is another opportunity this year — and one you can enjoy
while still alive!
You probably have heard
but if not, here is a Wall Street Journal article which explains the unique
situation before the end of 2012, allowing a $5.12 million gift tax exemption.
There is an old proverb
that says it is better to give with a warm hand (that is, while alive) than
with a cold one. Usually however, there are significant taxes on lifetime gifts
over a certain amount. This year there is no such tax on amounts of up to $5.12
million. This gifting can save you a lot
of money in estate taxes.
Here’s the catch,
though. It must be accomplished by Dec. 31, 2012. Time is running out. So if
you think you might be interested in exploring this option, please call our
office immediately so we can assist you in accomplishing your goals.