As the current federal estate/gift tax law is scheduled to expire on December 31, 2012, this is an opportune time to take advantage of the planning techniques available under current law and to avoid being subject to newly proposed restrictions. Potential low asset valuations and interest rates due to the challenged economy further enhance this period's unique planning potential by allowing assets to be gifted at a lower tax value.

By way of background, until the end of 2012, the federal estate, gift, and generation-skipping transfer ("GST") tax exemption is currently set at an all-time high of $5,120,000 (or $10,240,000 per couple) and the top marginal tax rate is at a low of 35 percent.

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Topics:  Generation-Skipping Transfer, Gift-Tax Exemption, Grantor Retained Annuity Trust, Year-End Planning, Year-End Tax Planning

Published In: Tax Updates, Wills, Trusts, & Estate Planning Updates

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

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