The political ads are over. The votes have been counted. The results are in.
Whether or not you agree with the election results, a lot of things are up in the air in regards to our country’s future. However, there is one thing I now know for a fact– the current estate and gift tax exemption of $5.12 million (and the accompanying top tax rate of 35%) are going away, and soon.
If you haven’t been following this (as if you don’t have enough to keep track of) the nutshell is this – if Congress does nothing, on January 1st, 2013, the estate tax and gift tax exemption drops to $1 million, with a top marginal rate of 55% (with an additional surtax of 5% for estates between $10 million and approximately $17 million). WOW! – the proper words elude me.
Bottom line – your clients have less than 2 months to take advantage of these gifting opportunities. Your clients won’t be your clients for long if you pass this up.
SLAT’s, GRAT’s, ILIT’s, FLP’s, QPRT’s, and Dynasty Trusts are all in play here – give us a call and we can help you design your next case.