Chance of a lifetime – Don’t miss the temporarily high gift tax exemption

Description

Abstract: Thanks to 2010’s Tax Relief act, it’s possible to transfer up to a lifetime maximum of $5.12 million to family members or others free of gift taxes. But, without congressional action, on Jan. 1, 2013, the lifetime gift and estate tax exemptions will fall to $1 million. In addition, the top gift and estate tax rates will increase from 35% to 55%. This article explains the benefits of a transfer in 2012, while a sidebar offers options for those who aren’t ready to fully relinquish control of their assets but want to take advantage of the current gift tax exemption.