Federal wealth transfer tax law enacted in December 2010 (the “2010 Tax Act”) increased gift, estate and generation-skipping transfer tax exemptions to $5 million for calendar years 2011 and 2012. We have sent several previous alerts indicating the opportunity afforded by this new law for those willing to act before the end of 2012. Based upon information coming out of Washington as of late, some have speculated that the ability to make large lifetime gifts without incurring tax liability may be cut short. More specifically, it has been rumored that when the “Super Committee” is required to issue its decision on November 23, 2011, its recommendations could include a reduction of the federal gift tax exemption from the current $5 million to $1 million, and that the effective date of legislation implementing the change may be December 31, 2011, or possibly even November 23, 2011.
Click the link below to read the full alert.