President Obama’s recent budget proposal would bring the gift tax exemption back to $1 million from the current $5 million. Transferring assets that may appreciate will be important to avoid estate tax and generation-skipping tax in the future, and there may only be approximately 10 months left to utilize the current law with a large exemption. Obama is proposing to return to the $3.5 million estate tax exemption as in 2009, and the $1 million gift tax exemption and generation-skipping tax exemption and a 45% tax rate.
Many people in wealth categories should seek estate planning advice in the very near future regarding this matter.