Blog Archive
June 2012

What About this $5 million Gift Tax Exclusion?

Did you know that the amount of money you can gift away to your heirs is the highest it has ever been in history - $5,120,000? It’s a very rare thing when Congress decides to give every American a $5MM tax break, but that's exactly what they did back on December 17, 2010. Specifically, the Lifetime Gift Exclusion which has never been more than $1MM was raised by Congress to $5MM (it's indexed, so in 2012 it's $5,120,000) and it applies to only two years - 2011 and 2012. Time is short so we are passionate about telling everyone about this because it is an incredible opportunity for everyone with assets over $1MM to pass those assets to heirs without paying any wealth transfer taxes - and done correctly those assets will not ever be subject to transfer taxes. The number of Americans with assets over $1MM is a very large number today, especially when the taxes we are talking about are levied on all stocks, bonds, homes, other real estate and life insurance proceeds...