Dear Clients and Colleagues:
This bulletin is an update on the most recent gift and estate tax developments, and presents our current thinking regarding wealth transfer planning in 2012. It also serves as a follow up to our “Tax Relief Act of 2010” bulletin of January 3, 2011, which can be accessed by clicking the “Family Wealth and Tax Planning” link on our firm website (www.hopkinscarley.com), and viewing the "Related Articles" on the right side of the screen.
Increase In Gift and GST Tax Exemptions - $120,000 Per Person / $240,000 Per Couple. A significant change for this year is that the gift tax and generation-skipping transfer tax (“GST tax”) exemptions have increased by $120,000 for each individual [$240,000 for each married couple]. These exemptions are currently $5,120,000 for each individual [$10,240,000 for each married couple], reduced by prior lifetime taxable gifts. If you have previously exhausted your $5,000,000 exemption, then you may want to consider ways to take advantage of (and potentially “leverage”) this new increase in the exemption.
Please see full letter below for more information.
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