Gift Tax Holiday
Cindy J. Ackerman and Richard J. Kelber
Winter 2011 Firm Newsletter
We celebrate the start of the year 2011 with dramatically expanded federal gift tax exemptions. The 2010 Tax Act provides a $5 million exemption until January 1, 2013, from the following federal transfer taxes:
- Gift tax on transfers during lifetime;
- Estate tax on transfers upon death; and
- Generation-skipping transfers to grandchildren and younger generations during lifetime or upon the death of the transferor.
These changes present new opportunities for lifetime transfers of wealth to children and grandchildren. A national commentator recently noted that "a surge in gifting" is expected in 2011 as a result.