With President Obama elected to a second term, the uncertainty of the election is behind us. However, uncertainty persists regarding the estate and gift tax exemption set to expire on December 31, 2012, and revert to a top tax rate of 55% on anything over $1 million. If the exemptions expire, the new rate will be a dramatic adjustment from the current top rate of 35% on anything over $5 million per person.
Given the financial crisis facing the nation at year end along with the continuation of a divided Congress, it is unlikely that the President and Congress will work together to extend the current estate and gift tax rates. Therefore, it is imperative that you move quickly to take advantage of these favorable gift and estate tax planning strategies prior to year end. To schedule a consultation call 702.433.4455.
Related Article: Estate and Gift Tax Changes Scheduled for 2011