Taxation & Estate Planning

5 Reasons to Think About Making Gifts in 2010

By Deirdre Wheatley-Liss

I came across this great summary of 5 reasons to consider making gifts in 2010 by Marilyn J. Maag through Lexis Nexis Estate Practice & Elder Law Community (I follow them on Twitter).

1. Changes in tax rates - the gift tax rate is scheduled to go up from 35% to 60% in 2011 unless Congress acts
2. Low asset values - particularly for real estate and family businesses
3. Low applicable federal interest rates - make techniques such as Grantor Retained Annuity Trusts (GRAT) more successful
4. Restrictions on Intra-Family Transfers - may become law next year
5. Valuation Discounts - may be going away

Image: Francesco Marino / FreeDigitalPhotos.net

Full post as published by New Jersey Estate & Elder Planning Blog on September 10, 2010 (boomark / email).