Publication

Estate Planning News for 2013

by Michael Donnelly Put simply, gifting is alive and well.  Here is why. 1. The $5,000,000 plus exclusion still applies to gifts. We were concerned that 2012 was a window for making gifts that would likely close in 2013.  In 2012, you could make gifts up to your full applicable exclusion amount of $5,120,000 without paying taxes.  Before 2012, the applicable exclusion amount for gifts was $1,000,000 even if that exclusion was greater at death.  Although no one was sure, most pundits believed at least the gift exclusion would return to $1,000,000 in 2012. It did not.  The $5,000,000 plus exclusion still applies to both gifts and to your estate when you die.  In fact the way the law stands now gifts appear even safer than in 2012.  There is no clawback problem.  We can explain what that means. 2. All planning techniques for gifting still available. Also favorable tax saving strategies, even though previously threatened, have not been curtailed.  Discounting, GRATS, and all other techniques are still available. Gifts are not for everyone.  However, if your estate exceeds $5,000,000 it is worthwhile to discuss in detail with us the opportunities presented by the current law.  We think you will be pleasantly surprised.


Michael Donnelly is a Principal in the firm’s Baltimore office. Mr. Donnelly possesses uniquely valuable skills and experience in the areas of tax law, business law, trusts and estates, wealth preservation and executive compensation. He can be reached by phone at 410.209.6456 or by email at mdonnelly@offitkurman.com.