URGENT… Plan for Using Estate and Gift Tax Exemption in 2012
As many of you already know 2013 is going to be a year of change in the tax world… Until December 31, 2012 you can make tax free gifts of up to 5,120,000 but on January 1, 2013 tax free gifts will be limited to 1,000,000. That is HUGE. If your estate is well under 5,120,000 you have probably had a comfortable belief the estate tax will not apply to you. However the morning after New Year’s Eve will not only require aspirin but a rude awakening that on January 1, 2013 your heirs may be facing a huge tax bill should you die before Congress acts. Of course Congress could act but who knows what will happen and who will be reelected! Planning is imperative so be sure and check your documents AND be sure you take advantage of gifting in 2012. In 2013 those tax savings from the 5,120,000 gifting and estate tax exclusion may be gone and possibly wasted. Discuss with your advisor ASAP. At the end of the year if you want to make gifts of closely held businesses, such as FLPs, LLCs, etc. you can be sure that the appraisers are going to be swamped so make your decisions as soon as you can!