As most readers know, the federal estate tax (FET) was repealed for one year at the end of 2009 and it is looking less and less likely that there will be a retroactive application of the FET. However, there is still a gift tax, presently 35%, if you give away more than $1 million in assets during your lifetime. Additionally, the federal estate tax is likely to be reinstituted in 2011 so we should continue to consider ways to transfer assets without using any of our credit against the federal estate tax or gift tax. Check out this Forbes Magazine article on 5 ways to make gift tax free gifts.
Please contact Douglas L. Kaune, Esq. to discuss your particular your estate planning questions and to review these or other gifting or transfer strategies.