$5 Million Life Time Gift Tax Exemption Bonanza

At the end of 2010, the estate tax was re-instated, but the gift-tax exclusion was unexpectedly increased to a shocking $5 million per person, but only for two years. This allows donors to move large amounts of assets into trust documents, passing these assets on before they appreciate while avoiding estate/gift tax penalties.

This is one of the most opportune times for estate planning in our history. It is worth talking with a lawyer even if you are not planning on making any estate planning decisions right now. At Cushing & Dolan, P.C., we have been helping our clients realize their estate planning goals for more than 25 years. From our eight Massachusetts office locations (Boston, Waltham, Westborough and Woburn), we serve individuals, families and businesses throughout Massachusetts, New Hampshire, Florida, Pennsylvania, Arizona, and New York.

The Help You Need

Our attorneys have a thorough understanding of the current gift tax exclusion rules. We can help you:

  • Maximize the gift tax exemption: The gift tax exemption has been raised from $1 million to $5 million, but this exemption will not last forever. Let us help you maximize this tremendous tax benefit before it sunsets in 2013.
  • Understand the “claw-back” taxation possibility: The concern for many people is that gifts made now under the current exemption will be subject to the gift tax regulations that are put in place after this current exemption sunsets. The new laws might “claw-back” to apply to gifts made during this time.
  • Understand portability of the gift: Portability refers to the survivor’s right to use the unused portion of deceased spouse’s exclusion. There are different portability rules for the estate tax exemption and the gift tax exemption.
  • Utilize the generation-skipping tax exemption: Up to $5 million of gifts to grandchildren is also excluded from estate taxation for 2011 and 2012.

It is essential to utilize the exemption in the context of a fully integrated estate plan. With our extensive experience in estate planning and taxation matters, we can analyze the technical rules, benefits and potential pitfalls of each of grantor retained annuity trusts (GRATs) vs. sales to intentionally defective grantor trusts and qualified personal residence trusts (QPRTs) vs. home security trusts. Our lawyers can talk you through the benefits and possible problems with all of your estate planning options, until your gifting strategy is perfectly maximized for your needs.

Free Consultations With Experienced Lawyers

Talk with one of our experienced Boston estate planning attorneys to discuss your options for maximizing your estate planning goals. Call 888-759-5109 or contact us online for a free consultation with a lawyer from Cushing & Dolan, P.C.