The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the “2010 Tax Act”) made a significant number of changes to the federal estate, gift, and generation-skipping transfer (“GST”) tax laws. One of the biggest changes is a massive increase in the federal lifetime gift tax exemption: this exemption rose from $1,000,000 for 2010 to $5,000,000 for 2011 and 2012. In other words, during the next two years, an individual U.S. citizen or U.S. permanent resident may now make up to an additional $4,000,000 in taxable gifts during his or her lifetime, without triggering any gift tax payments. However, this increased gift tax exemption is currently scheduled to remain in effect for only two years: 2011 and 2012, and there is no guarantee that the changes will be extended or made permanent before January 1, 2013. This means that those who want to take advantage of the potentially tremendous benefits  offered by the new exemption level must move quickly.

Our February 2011 newsletter discusses the increased gift tax exemption, the many possibilities it creates, and the factors you should consider before making large taxable gifts to take advantage of the new exemption. Please follow this link to download a copy of the full article:

2011 & 2012: The Golden Gifting Years

If you would like to consider how lifetime gifts can benefit your family, or if you have a question you would like us to answer in a future newsletter, please let us know. Call us at (678) 720-0750 or e-mail Scarlett Ollila at sollila@morgandisalvo.com. We look forward to hearing from you.

If you know someone who would like a copy of this newsletter, please have them contact us to be added to our distribution list.

– Loraine M. DiSalvo & Richard M. Morgan