|August 9, 2012|
Previously published on August 3, 2012
From a federal gift, estate and generation-skipping tax (GST) perspective, there is what we know, and what we don’t know. We know that the current, generous federal estate, gift and GST framework gives each individual the ability to transfer $5.12 million in assets to certain descendants, including children, grandchildren and more remote generations, free from federal estate, gift and GST taxes. We also know that these historically high exemptions expire Jan. 1, 2013. On that date, the $5.12 million exemption drops to $1 Million, with any amount above that exemption being taxed at the much higher 55 percent tax rate, when compared to the current rate of 35 percent applied to amounts above the current $5.12 million exemption.