Now that the dust has settled following the 2012 presidential election, some tax experts are predicting that President Barack Obama's administration and the new
Congress may let the current lifetime gift and estate tax exemption expire. In his article,
Grab the $5M Gift and Estate Tax Perk: It's Gone in 2013,
Robert W. Wood discusses this important issue:
It’s post-election, nearly year-end, and taxes are on everyone’s
mind. You may not be able to do much about the fiscal cliff or other
imponderables. But you can fix your will and trust or just make a gift
by year-end.
Act now! Think infomercial. This is a special limited time offer!
Procrastination is understandable, especially about taxes and
mortality. Yet it’s still surprising most people haven’t taken advantage
of the incredibly favorable estate and gift tax law expiring in 2012.
See It Pays To Plan For Future Estate Tax Changes.
Congress enacted a $5 million exemption for both gift and estate taxes, but only through 2012. See Making Tax Decisions In Limbo. But wait, there’s more! Indexed for inflation, the exemption is now $5,120,000. It
drops to only $1 million January 1, 2013. That’s a free pass to give
away up to $5,120,000 without tax. If you are married, that’s up to $10,240,000 for a married couple with no tax.
