Moves to Make Before 2012 Expires When the Gift Tax Exemption Might Expire Too

I have previously blogged about how the estate taxis set to expire at the end of 2012. As a result of this uncertainty, estate planners are seeing a drasticrise in business from clients concerned that the gift-tax exemption willdecrease dramatically next year. 

NerdWallet recommends avoiding the rush and consulting a financialplanner to create a viable financial plan.  This planning can take several months to complete withvaluations of assets and completion of paperwork, so it is best to see aplanner as soon as possible.  Thatway you can put your plan into action before the $5 million gift tax exemptionpotentially expires.

Also, remember that there are other ways to gift yourestate, tax-free.  Individuals cangive up to $13,000 to another person per year before gift taxes kick in.  Tuition or medical expenses for othersare also tax-exempt if individuals pay them directly to the institution.  Additionally, individuals can stillmake tax-free gifts to spouses and charitable organizations.

See Ashwin,I’ve Heard The Gift Tax Exemption Is Going To End Soon—Does That Mean I ShouldChange My Will?, NerdWallet, Aug. 24, 2012.