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THE GIFT TAX LIFETIME EXCLUSION LIMIT MIGHT CHANGE IN 2013

THE GIFT TAX LIFETIME EXCLUSION LIMIT MIGHT CHANGE IN 2013

If gifting is part of your overall estate plan, you may want to consider speaking with your attorney about the best way to do so this year and in future years. The law is subject to change in the future. In fact, President Obama has proposed lowering the exclusion limit for the gift tax starting in 2013.

Currently, you can give up $5,120,000 during your lifetime without being subject to the gift tax. There is a limit of $13,000 per year to any individual. If the law remains the same, then the lifetime exclusion will become $1,000,000 in 2013. President Obama has proposed an exclusion limit of $3,500,000 beginning in 2013. While the exact number is subject to change before any law is passed, it seems likely that the lifetime exclusion will be less after this year. That means that if you have a long-term gifting plan in place, you should revisit it to make sure that it does not rely on the 2012 limit.

Visit your estate planning attorney to discuss your gifting plan and whether you need to change it in anticipation of a change in the law. You may wish to gift more than previously planned in 2012 or it might be better to rework your estate plan to rely on less gifting. Your attorney can help you determine the best option for you.