Tax Saving Opportunity

Now is a perfect time for taxpayers to achieve favorable tax results using estate planning techniques. The current estate, gift, and GST tax exemptions are $5 million per person until the end of this year, and the top transfer tax rate is only 35%. Portability will also be around at least until the end of the year, allowing a surviving spouse to use a deceased spouse’s unused estate tax exemption. Additionally, depressed asset values, low interest rates, and current transfer tax laws provide the perfect opportunity for taxpayers to pass on a greater amount of wealth to younger generations without incurring high tax consequences.

Taxpayers should act fast, however, as the current exemptions are scheduled to return to $1 million per taxpayer starting on January 1, 2013 unless Congress takes actions.  The top transfer tax rate is scheduled to increase to 55%, and portability is set to expire by 2013. Taxpayers hoping to make the most of their wealth transfers should act now, before it is to late.  

See Melissa Cover Selinger, On the Money: Estate Planning Window of Opportunity, BizTimes.com, Jan. 9, 2012. 

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