The next seven months provide tax-free gifting opportunities for many that may never be available again. The 2012 federal estate, gift, and generation-skipping transfer tax rates are the lowest (35 percent), and the corresponding exemption amounts the highest ($5,120,000), they have ever been. And, unless Congress takes action, these rates are scheduled to increase (to 55 percent, or 60 percent for estates over $10,000,000), and the exemptions to decrease (to $1,000,000, except that the exemption for the generation-skipping transfer tax will be adjusted for inflation), effective January 1, 2013. Given that no one knows with certainty what Congress will do, if anything, individuals should explore and take advantage of the current tax-free gifting opportunities available to them, and quickly.
Continue reading Mothers Day may be over, but you should still consider giving a gift in 2012