There may not be a better time to engage in strategic gifting, GRAT planning or IDGT planning. The combination of expiring provisions and looming potential changes make the following strategies particularly powerful.
Trick-or-treaters have emptied the candy bowl, plans for pumpkin pie and turkey legs are underway, and soon we’ll all be singing Deck the Halls …for the end of 2012 is rapidly approaching. For many of us, 2013 may bring a potentially disastrous tax predicament, either the fiscal cliff itself or something else entirely.
When it comes to estate and gift taxes there are some actions you may want to take while it is still 2012. This matter was taken up in a recent Forbes article appropriately titled “Year-End Estate Tax Considerations -- TIME IS RUNNING OUT.”
Yes, time is running out on your ability to take advantage of more than a few powerful tax tips and tricks. In fact, this countdown clock has been ticking toward this very precipice since the final days of 2010. If you haven’t been carefully planning all along, then now’s the time to jump to it! What can be done is another question and, while it depends on your unique goals, the original article offers a few examples of your options before the buzzer sounds.
Another Forbes article titled “Major Estate Tax Change Looming - Don't Be A Last Minute Louie” points out rather directly how 2012 has been a year of waiting – of waiting for Congressional action, of waiting for an election to come and go, and of waiting for a settled law to base your planning around.
Instead of waiting, however, the best advice would seem to be to take action as best we can. So please don’t delay, schedule a consultation with your legal, financial and tax advisors ASAP.
References: Forbes (October 23, 2012) “Year-End Estate Tax Considerations -- TIME IS RUNNING OUT”
Forbes (October 26, 2012) “Major Estate Tax Change Looming - Don't Be A Last Minute Louie”