Temporary gift tax exemption expires soon President Obama’s Proposals
|Temporary gift tax exemption expires soon
President Obama’s Proposals
|As you aware from prior emails, there is a temporary $ 5,120,000 gift tax exemption that is set to expire at the end of 2012. President Obama has made proposals to substantially limit the ability to effectively plan an estate (read Forbes article). Briefly, his proposals would:
Even if these proposals are not enacted, the transfer tax rules for 2012 will “sunset” on December 31, 2012. Thus, the gift and estate tax exemptions will drop to only $1,000,000 and the top bracket will increase to 55%.
There is only 10 months left to take advantage of the 2012 rules.