The Increased Gift-Tax Exemption - Get It While It Lasts!

The big news for estate planners in the U.S. tax legislation passed last year isn't the $5 million estate-tax exemption -- though that number is far higher than expected -- it's the $5 million lifetime gift-tax exclusion. This gives high-net-worth individuals the ability in the next two years (2011 and 2012 only) to shift assets out of their estate tax-free while they are living. This is an incredible opportunity for tax-free intergenerational wealth transfers, and the opportunity will not last long. Think of the possibilities: real estate, jewelry, family heirlooms, cash, stocks, bond, and family businesses -- all passing tax-free to family members during the grantor's lifetime (so long as the asset value stays under the applicable exemption). If you have any questions about the lifetime gift-tax exclusion and whether it is a good idea for you, contact your CPA and estate planning attorney to set up a consultation.