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While the 2012 elections are behind us, there are still many differences to resolve and uncertainties to work through. One of the burning questions in the estate planning community is what the implications of the election result will be for clients and their estate plans? Indeed, there are too many to discuss in this blog, but I strongly encourage you to read my recent Letter to Clients for the details.
I’d like to emphasize that, between now and the end of this year, there is still time to take advantage of the greatest ever estate and business transfer opportunity. Otherwise, barring quick action from a lame duck Congress, starting in 2013, there is likely to be much lower estate and gift and generation-skipping transfer tax exclusions and higher transfer tax rates.
For example, for a Maryland couple thinking of fully using their combined $10.24 million dollar gift and estate exclusion before the end of this year, the expected estate tax savings can range from over $2.5 million dollars (with a $3.5 million estate tax exclusion in the future) to over $4.5 million dollars (with a $1.0 million estate tax exclusion in the future).
Other changes that may occur include the elimination of discounts on the transfer of family-owned businesses.
The only certainty that I know is that time is of the essence and, at a minimum, individuals with assets in excess of $1 million dollars considering gifting should definitely consider doing so before the end of this year. Please call or e-mail us right away to make an appointment: 301-468-3220 or firstname.lastname@example.org.