Time Is Running Out in Ann Arbor on Tax Planning Options

Much of what is being written on the prospect of the expiration of the Bush-Era tax cuts focuses on its income tax implications. Yet, I believe that there is a greater likelihood that the estate and gift taxation aspects of this looming expiration are both less likely to be continued in prospective new legislation, and have a far more significant dollar impact for many. Accordingly, consistent with my past postings, there are more definitive gifting actions that should be considered prior to year-end – that is, NOW!

Trick-or-treaters have come and gone, the turkey is on its way, and before you know it the holidays and the year itself will be over. What then? For many Americans the new year may find us in the grip of a potentially disastrous tax predicament, either the fiscal cliff itself or something else entirely.

When it comes to estate and gift taxes there are some actions you may want to take while it is still 2012. This matter was taken up in a recent Forbes article appropriately titled “Year-End Estate Tax Considerations -- TIME IS RUNNING OUT.

Yes, time is running out on your ability to take advantage of more than a few powerful tax tips and tricks. In fact, this countdown clock has been ticking toward this very precipice since the final days of 2010. If you haven’t been carefully planning all along, then now’s the time to jump to it! What can be done is another question and, while it depends on your unique goals, the original article offers a few examples of your options before the buzzer sounds.

Another Forbes article titled “Major Estate Tax Change Looming - Don't Be A Last Minute Louie” points out rather directly how 2012 has been a year of waiting – of waiting for Congressional action, of waiting for an election to come and go, and of waiting for a settled law to base your planning around.

Instead of waiting, however, the best advice would seem to be to take action as best we can.

Remember: this is an excellent time to schedule a consultation with your legal, financial and tax advisors. Don’t go it alone, as too much is at stake.

To talk more about using your tax planning options to the best advantage, contact us at www.elderlawannarbor.com.

References: Forbes (October 23, 2012) “Year-End Estate Tax Considerations -- TIME IS RUNNING OUT

Forbes (October 26, 2012) “Major Estate Tax Change Looming - Don't Be A Last Minute Louie

Categories: Estate Planning, Taxes