Much
of what is being written on the prospect of the expiration of the Bush-Era tax
cuts focuses on its income tax implications. Yet, I believe that there is a
greater likelihood that the estate and gift taxation aspects of this looming
expiration are both less likely to be continued in prospective new legislation,
and have a far more significant dollar impact for many. Accordingly, consistent
with my past postings, there are more definitive gifting actions that should be
considered prior to year-end – that is, NOW!
Trick-or-treaters have come and
gone, the turkey is on its way, and before you know it the holidays and the
year itself will be over. What then? For many Americans the new year may find
us in the grip of a potentially disastrous tax predicament, either the fiscal
cliff itself or something else entirely.
When it comes to estate and gift
taxes there are some actions you may want to take while it is still 2012. This
matter was taken up in a recent Forbes article
appropriately titled “Year-End Estate Tax Considerations — TIME
IS RUNNING OUT.”
Yes, time is running out
on your ability to take advantage of more than a few powerful tax tips and
tricks. In fact, this countdown clock has been ticking toward this very
precipice since the final days of 2010. If you haven’t been carefully planning
all along, then now’s the time to jump to it! What can be done is another
question and, while it depends on your unique goals, the original article
offers a few examples of your options before the buzzer sounds.
Another Forbes article titled “Major Estate Tax Change Looming – Don't Be A
Last Minute Louie” points out rather directly how 2012 has been a year
of waiting – of waiting for Congressional action, of waiting for an election to
come and go, and of waiting for a settled law to base your planning around.
Instead of waiting, however, the
best advice would seem to be to take action as best we can.
Remember: this is an excellent
time to schedule a consultation with your legal, financial and tax advisors.
Don’t go it alone, as too much is at stake.
For more information and articles on estate planning and elder law topics, please visit our website and sign up for our free monthly e-newsletter. You can also friend our law practice's Facebook page (R Christine Brown).
References: Forbes
(October 23, 2012) “Year-End Estate Tax Considerations — TIME
IS RUNNING OUT”
Forbes (October 26, 2012) “Major Estate Tax Change Looming – Don't Be A
Last Minute Louie”