Happy New Year!

As we ring in the new year this evening, many Americans will make their new year’s resolution to make a positive change for 2009. When we wake up in the morning, there will be at least a few significant changes to the federal estate and gift tax exclusion amounts. The estate tax exclusion amount will rise from $2,000,000 to $3,500,000. That means estates under $3,500,000 will not have to file a federal estate tax return. If your resolution is to not pass away in 2009, then you will have to wait and see what Congress does legislatively with the estate tax exclusion amount this year.

Additionally, the annual gift tax exclusion amount will rise from $12,000 to $13,000 per donee. That means that you can gift up to $13,000 ($26,000 if your married) to as many people as you want without having to report it on a gift tax return and without using any of your $1,000,000 lifetime exemption.

Happy New Year from Wrightsel & Wrightsel