Taxes on big gifts slated to soar-Many scramble to transfer wealth

[No Elephants]

Taxes on big gifts slated to soar
By Les Christie @CNNMoney December 13, 2012: 5:50 AM ET


NEW YORK (CNNMoney)
Wealthy Americans are scrambling to transfer their riches before the end of the year when gift taxes are set to jump.

Currently gifts and estates of up to $5.12 million are exempt from taxes, but as part of the fiscal cliff, any bequest of more than $1 million will be taxed next year -- and at a 55% rate (currently the rate is 35%). That will kick in unless Congress and the President agree to extend the current exemption or agree on a new one. Many older Americans are not waiting to see if that happens.

"It's crazy," said Richard Behrendt, Director of Estate Planning for Baird's Private Wealth Management. "I bet more wealth is transferred this year than in the past 10 years combined."

Jonathan Blattmachr, a principal of Eagle River Advisors in New York who has lectured groups of estate planners about the expiring exemption, said the amount given away in 2012 will be three or four times that of any other year.

The drop to a $1 million exemption means that the tax hit on gifts or estates of $5.12 million will go from zero this year to $2.266 million next year, according to Blattmachr. The gridlock in Washington could result in the exemption staying that low, perhaps for years.

http://money.cnn.com/2012/12/13/pf/gift-estate-tax/index.html?hpt=hp_t3

[formercia]

1. Aww, poor babies....

:nopity: :nopity: :nopity: :nopity: :nopity: :nopity:

[Enthusiast]

2. My thoughts exactly........nt