Here’s what you’ll find in the August 2012 issue of Gunster’s Family Wealth Compass:
2012 only lasts a year: What a difference a day can make
Perhaps you have noticed the myriad of articles and blogs about gift and estate tax changes that could – or will – occur at midnight, December 31, 2012, the tax witching hour.
Current law provides that we will revert to 2001 transfer tax rates and exemption levels on January 1, 2013.
Here is a comparison among the current 2012 and soon-to-be 2013 rates and exemptions:
|Gift tax exemption||$5,120,000||$1,000,000|
|GST tax exemption||$5,120,000||$1,000,000*|
|Estate tax exemption||$5,120,000||$1,000,000|
|Gift/GST/estate tax rate|
*indexed for inflation
Although there is much speculation and debate, it is uncertain what will occur at the end of 2012. Much will depend on what happens in this year’s election. However, there are prudent actions that can, and should, be taken well before December 2012 by anyone who wants to maximize estate, gift and GST tax savings.
If you do not use the 2012 exemptions before year end, a significant planning opportunity may be lost.
Read more: Family Wealth Compass: Charting a course for your family’s future (August 2012)
This publication is for general information only. It is not legal advice, and legal counsel should be contacted before any action is taken that might be influenced by this publication.
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