Estate Planning & Probate Group

Published on June 18, 2012 Yes, 2012 is an excellent time to make gifts. We have an unusually high federal estate/gift tax exemption in 2012 that permits each taxpayer to transfer up to $5.12 million of property to children or other beneficiaries, without transfer taxes. If a taxpayer makes a gift in excess of that amount (or dies with an estate greater than that amount), the maximum gift or estate tax rate is 35% this year. In contrast, if Congress

Published on April 27, 2012 By Kari Brotherton In selecting property to give as a gift, the following general rules apply; however, you should consult with your estate or tax attorney before making a significant gift as your situation may require. Don’ts 1. Do not give property with a basis higher than its current fair market value if the donee is someone other than your spouse. Instead, you should sell the property, realize the loss (for income tax purposes), and

Published on February 18, 2012 “GST” tax refers to the federal generation-skipping transfer tax. In general, the GST tax applies to the transfer of property (during life or at death) to grandchildren or more remote descendants. However, every taxpayer has an exemption from the GST tax. By funding a GST trust (also called a “dynasty trust”) and using your GST exemption, you can make property available to your children, grandchildren, or more remote descendants in a way that will avoid

Published on June 18, 2011 In order to elect portability, a federal estate tax return (Form 706) must be timely filed. Portability allows a decedent’s unused federal exemption to be transferred to the surviving spouse’s exemption, allowing the surviving spouse to use his or her own exemption, plus the unused amount, when he or she later dies. Based upon the changes in the estate tax laws at the end of this year, portability may be an effective estate planning tool