SUCCESSIONS

A Big Price Tag for Waiting – Using the Estate/Gift/GST Tax Exemption in 2012

Unless Congress does something to change current tax law, 2012 may be the last year of historically high estate, gift and GST tax exemptions – $5 million for an individual and $10 Million for a married couple.  On January 1, 2013, these exemptions drop to $1 million/$2 million, summarized as follows:

Despite the substantial tax benefits, many clients are not willing to give up the benefit or control of this significant value.  Fortunately, several advanced irrevocable trust strategies are available to both transfer assets and retain varying levels of control and benefit of assets while allowing the substantial tax benefits of transferring assets discussed above.

 Consider the following:

 These are just a few strategies that with careful counseling can significantly further a client’s objectives.  Because the tax law is set to change as of January 1, 2013, this opportunity may only be available for a very limited time.