RMR Wealth Management Blog

Gift & Estate Tax Opportunity Set to Expire By Ryan C. Rogers, RMR Wealth Management

RMR Wealth Management - Wednesday, October 10, 2012

Gift & Estate Tax Opportunity Set to Expire By Ryan C. Rogers, RMR Wealth Management

Unknown to many, the temporary two year feature of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Authorization Act of 2010 is about to expire.  This feature increased the federal gift and estate tax applicable exclusion amount in 2011 to $5,000,000.00 per person ($10,000,000.00 per married  couple).  In addition, the tax rate on gifts exceeding that amount was reduced to 35%.  Since this feature was indexed for inflation, the amount per person has increased to $5,120,000.00 ($10,240,000 per married couple) for 2012. 

 

Unless Congress acts, this lifetime gift tax exemption will drop to $1,000,000.00 on January 1, 2013.  Moreover, the tax rate on gifts exceeding that amount will jump from 35% to 55%.  For wealthy individuals, time is running out to make gifts that in all likelihood  will reduce estate taxes in the future.

 

Many estate planning professionals are concerned about the fourth quarter year end rush of clients looking for guidance on this topic.  I encourage anyone interested in this exemption to contact me as soon as possible to discuss your options with my estate planning experts.

 

Ryan Rogers

RMR Wealth Management

Follow Ryan C. Rogers, RMR Wealth Management on Twitter http://twitter.com/#!/RyanCRogers1

 


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