The End of Gift Tax Exemption Means an Increase in Estate Planning Work

Some people predict that the end of the gift tax exemption will bring an increase in people trying to use the exemption. However, because many people will have the same idea, it might become harder to find a lawyer who is not already busy. It is important to note that for some of the bigger firms the rush has already begun. The reason for this rush is because at the end of this year the gift tax lifetime exemption and the estate tax exemption might decrease back to $1 million. Some individuals see this as a real possibility; therefore, they are making arrangements to get their affairs in order before the exemption decreases. 

If a person wants to take advantage of the gift and estate tax exemption, a person might want to start as soon as possible. According to some, it is already late in the game to begin planning for the future. The reason for this is because it takes some time to draft a plan and place it into effect. When making gifts, it might be a good idea to use trusts, and to choose the right assets to gift.

See Chris Taylor, Get Ahead of the Coming Gift-Tax-Apalooza, Reuters, June 8, 2012.

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