The current Federal gift tax exemption of $5 million (or $10 million for married couples who elect to split gifts) is scheduled to revert to $1 million (or $2 million for married couples who elect to split gifts) on January 1, 2013. A proposal was submitted to the Super Committee to revert to a $1 million Federal gift tax exemption one year earlier, on January 1, 2012. As noted above, there are also concerns that the reversion could be accelerated to as early as November 23rd of this year. Accordingly, clients may wish to consider making immediate gifts to use part or all of the $5 million (or $10 million) Federal gift tax exemption.
Please contact us with any questions or if you would like to proceed with a gift transaction before any potential change in the law.