Friday, September 16, 2011

Use It or (Possibly) Lose It

Currently, the federal gift tax exclusion amount is $5,000,000. If Congress does nothing, which we know from recent years is a real possibility, the law sunsets on December 31, 2012 and the exclusion amount will drop to $1,000,000. If Congress does act, it is possible (maybe even likely) that the exclusion amount will be lower than $5,000,000. This means that the wealthy may have less than two years to gift significant wealth tax-free.

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John Howard said...

This is really interesting. I didn't know you could give a gift of that amount to somebody before it was taxed. I wish that I had that much money to give away. I think if you were to give that much money away then you would need to make sure you are doing everything according to the law so talk with a lawyer. http://www.bildfell-law.ca/estate_and_will_litigation.html

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