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Transferring Assets? The Tax Man Looms

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					Transferring Assets? The Tax Man Looms

The gift tax exists because of the fact that people logically transfer assets to their future heirs while
they are still alive in order to avoid the estate tax at their death. These two federal levies are unified
meaning it doesn’t matter whether the transfer takes place during your lifetime or at the time of
death.

There is a single, unified exclusion that stands at $5.12 million this year. It is important to understand
that this applies to the combination of your estate plus the taxable gifts that you have given
throughout your life.

Next year the exclusion goes down to $1 million, so in fact this is a good year to consider making gifts
to your loved ones. You would benefit discussing this with an experienced Oklahoma City estate
planning attorney sooner rather than later because this window of opportunity is rapidly closing.

It should be noted that within each given year you can make gifts up to a certain point without
incurring gift tax exposure, and these gifts won't count toward your unified exclusion. You can make
gifts of as much as $13,000 to any number of people each year free of taxation. Some people will take
advantage of this opportunity to incrementally fund certain advanced estate planning vehicles such as
family limited partnerships or life insurance trusts.

The tax laws are always changing and this is one of the reasons why it is advisable to frequently
discuss your situation with your attorney. As a very relevant case in point, if the total value of your
assets is somewhere between $1 million and $5.12 million you will be in a very different situation on
January 1, 2013, than you are right now.

Experienced estate planning attorneys Oklahoma City OK of the Parman and Easterday offers estate
planning and business planning resources to residents of Oklahoma City OK. To learn more about
these free resources, please visit www.parmanlaw.com/ today.

				
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Description: The gift tax exists because of the fact that people logically transfer assets to their future heirs while they are still alive in order to avoid the estate tax at their death.