Gift Tax Planning Opportunities: The Window is Closing


As our clients know from our prior alerts, the last few years have seen unprecedented changes in the federal tax on gifts and bequests. One element of this was the unexpected increase in the federal gift and estate tax exemption (the “applicable exclusion amount”) in 2011 to $5,000,000 per person. Another element was the reduction in the maximum tax rate—to 35%—for gifts or bequests in excess of that exemption. These were temporary two-year features applicable to 2011 and 2012 and are scheduled to “sunset” at the end of 2012, at which point the estate and gift tax exemption and rates will revert to levels from more than a decade ago, namely: a $1,000,000 per person exemption and a top tax rate of 55%.

Please see full alert below for more information.

LOADING PDF: If there are any problems, click here to download the file.

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.

© Morrison & Foerster LLP | Attorney Advertising

Written by:


Morrison & Foerster LLP on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.