Tuesday, November 01, 2011

Inflation Adjustments

The IRS is issuing Rev. Proc. 2011-52 which will provide inflation adjustment amounts for various items beginning in 2012.  Some of the adjustments are particularly important to estate planning.

While the gift tax annual exclusion amount will remain at $13,000 for the 4th consecutive year, the exemption equivalent of the unified credit for gift and estate tax purposes is being adjusted to $5,120,000.  In addition the GST exemption amount is increasing to $5,120,000.

It is also important to remember that interest rates are at a historic low, values are still not rising and discounts on intra-family transfers are still viable.  Now is an incredible time for clients to be doing estate planning! 

If we can be of any assistance to you or your clients, do not hesitate to contact Bob or I.

Neil