Exemptions from the federal estate, gift and generation-skipping
tax are due to change after Dec. 31, 2012.
At the moment, the exemption is $5.12 million. Unless the
current law changes, the exemption will be $1 million on January 1,
2013. That means that a couple acting by Dec. 31 could give away up
to $10.24 million without paying any transfer tax (subject to state
gift tax, if any).
It should be noted that the use of these exemptions in 2012
should not disadvantage donors, or their estates, in the future,
even if the exemptions drop to $1 million, unless Congress and the
president make changes to the regulations.
Those who wish to make gifts but retain income from, or access
to, the principal related to any gifts made by Dec. 31, may be able
to do so in appropriate situations.
