BUILDING THE RIGHT TRUST
Incentives, credits and deductions within the U.S. tax system are currently in the spotlight, and most advisors are aware that unprecedented exemptions for gift and estate taxes are set to expire on December 31. Less clear, however, is how families can manage their assets to capitalize on the credits before the window closes.
Time Is Running Out For Clients To Make Year-end Gifts
any high-net-worth individuals have been taking a “wait-and-see” approach to 2012 gifting. The lifetime gift and generation skipping transfer (GST) tax exemptions are both currently set at $5.12 million, providing a tremendous opportunity to shift current wealth and future appreciation out of an individual’s estate. With both exemptions set to revert back to $1 million on January 1 (but indexed for inflation from 2001), time is running out on a potential once-in-a-lifetime gifting opportunity.