2012 may present the last opportunity to take advantage of the historically high lifetime gift tax exemption. In 2012, an individual can give up to $5,120,000 to children, grandchildren, or other beneficiaries without paying gift tax. Under present law, the exemption is scheduled to return to $1,000,000 on January 1, 2013. To ensure the use of the full $5,120,000 gift tax exemption, gifts must be completed by December 31, 2012.
A variety of gifting strategies may be employed for this purpose, including some that allow the donor to retain an economic benefit from the gifted assets. Implementation of these strategies, however, often takes months to complete.
Individuals interested in pursuing this opportunity should act without delay. If you are interested in 2012 gifting strategies, please call any of our estate planning attorneys.
