Closing the Wealth Transfer Window

by Randy Gardner - JD LLM MBA CPA CFP®

If someone you trusted told you that you could transfer all of your property to your children gift tax free through the end of the year and there was a 50 percent chance this opportunity would not be available in the future, would you transfer your property? Your answer would probably be, No, I need the property for my own use for the rest of my life. If your trusted advisor then said, You can have control of your property and the income or use of your property for much of your life and still transfer it to your children free of tax, would you transfer your property then? These questions and the related planning opportunities are what this book is about. In 2012, it is possible for an individual to transfer $5.12 million to loved ones without a gift tax. A couple can transfer twice that amount, or up to $10.24 million, to their loved ones without a gift tax. Through the use of trusts and entities, the donor can continue to benefit from the property while taking advantage of these possibly short-term opportunities. No one knows if these opportunities (the window ) will remain open. However, with President Obama's reelection along with a divided Congress, it is likely that some or most of the benefits available under the current law will not always be available.

73 pages, Mass Market Paperback

First published January 21, 2013