Why Now is the Time to Give: 2010 Presents Unique Gifting Opportunities


Because the current federal gift tax rate is historically low, and because there is no generation-skipping transfer ("GST") tax applicable to generation-skipping transfers made this year, 2010 presents unique gifting opportunities for individuals wishing to make taxable gifts to children, grandchildren or other loved ones. However,

Time is of the essence.

In order to take advantage of these opportunities, transfers must be completed by the end of the year. On January 1, 2011, current law provides that the estate, gift, and GST tax laws that existed onJanuary 1, 2001, will be reinstated.

What is going on?

As a result of a 2001 tax law, the federal gift tax rate in 2010 is the lowest it has been since the Great Depression, but this law expires 12/31/2010. The current gift tax rate is 35%; in 2011 and later years the rate may be 45% or even 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.

© Jackson Walker | Attorney Advertising

Written by:


Jackson Walker on:

Readers' Choice 2017
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.