The $5.12 Million Exemption – Use it or Lose it
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Now, weeks past the election with nothing positive coming out of Congress, people of means are finally starting to realize that it makes sense to use some or all of the $5.12 million federal gift and estate tax exemption before it falls to $1million next year. Doing so can save millions of dollars for one’s heirs.
This week I’ve already spoken to three people about such gifting, which can be leveraged with the use of limited liability companies and trusts. Married couples can even make gifts to trusts but keep the assets in the family for future use.
It’s still not too late for implementing gifting plans, but the clock is ticking. Estate planning attorneys, myself included, are running out of time to help clients. As it stands, I will be working weekends though the remainder of 2012.
Ben Franklin said that nothing is certain but death and taxes. True, but tax exemptions and rates are certain to change. Act now before they change for the worse.
