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Ford + Bergner LLP experienced an increased demand for estate planning advice given the estate and gift tax exemption expiring on December 31, 2012.  The uncertainty has driven many to consider giving large tax-motivated gifts in order to take advantage of the current $5 million exemption.

If the current estate and gift tax rates expire at the end of the year, the exemption amount will decrease from $5 million to $1 million –  the 2001 exemption amount.  Not only will the exemption will decrease substantially, but the estate and gift tax maximum rate will increase from the current rate of 35% to 55%.  This changes are substantial and will reduce the amount of flexibility afforded individuals.

When implemented correctly, individuals can give up to their current tax exemption amount of $5 million to their children or other loved ones without triggering a gift tax.  This benefits individuals whose estates are larger than $1 million exemption amount of 2001, set to return in 2013.

If you have questions or concerns about your estate plan and would like to consult with an experienced attorney, please contact Ford + Bergner LLP today.