Tax Planning Opportunities in 2012

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Significant estate tax planning opportunities which are available under current legislation may be eliminated or severely restricted after December 31, 2012. It is therefore critical to evaluate whether steps should be taken this year to maximize estate tax savings.

For the following reasons, 2012 is the year to implement tax reduction strategies:

  1. The federal law provides for a $5.12 million gift tax exemption through year-end which creates significant gifting opportunities. On January 1, 2013, the exemption is scheduled to be reduced to $1 million.
  2. Powerful concepts available under current law such as valuation discounts for interests in family entities and transfers to Intentionally Defective Grantor Trusts (“IDGTs”) and short term Grantor Retained Annuity Trusts (GRATs) may be restricted under new tax legislation...

Please see full article below for more information.

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Topics:  Gift-Tax Exemption, Grantor Retained Annuity Trust, Intentionally Defective Grantor Trusts, 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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