The Bush Tax Cuts are scheduled to expire on December 31st. We know from what we are hearing in negotiations between the Speaker of the House and White House, that taxes are going up. Whether it is the expiration of the Bush Tax Cuts or the implementation of a new Tax Code, whether this year or next, we know that our low tax rates will be ending.
Actions that are being taken now include Gifting while there is still a large Estate and Gift Tax exemption of roughly $5 million dollars. A number of our clients are taking advantage of this by having us build Gift Trusts and conveying assets into those trusts. We are doing it now with favorable tax consequences and also setting up those trusts so that they are creditor protected in the event the adult children, or multiple generations after, divorce or are in a law suit. They are also set up doing Dynasty Planning, or Generation Skipping Gift Tax Planning, so that the Trust will be able to run for generations without being subject to estate taxes. The Trust will need to be built and the assets transferred into them before the end of this month.
Do see your Estate Planning Attorney, Accountant, Financial Professionals, and Insurance Professional to seize these tax opportunities that will expire in a few days. Santa is not the only gift giver that will disappear shortly.
At the Law Firm of Steven Andrew Jackson, Attorney and Counsellor at Law, we have helped hundreds of families protect themselves and their loved ones, avoid Estate Taxes and Probate Costs, and keep their Estate Plans current with the law through The Customized Protective Estate Planning Solution™.