Let’s talk about gift and estate taxes. For all you people with 2-4 million dollars in assets, I am sure you will be glad to know two things:
The estate tax exclusion for 2011 and 2012 was raised to $5,000,000 (It was at 3.5 million in 2010, but was slated to go to $1,000,000 this year before last minute tax legislation at the end of 2010).
The gift tax exclusion for 2011 and 2012 was also raised to $5,000,000 (It has been at $1,000,000 for some time).
The gift tax exclusion (this is the amount every year you can give to anyone with filing gift tax returns or ever paying any gift tax on) for 2011 is $13,000. 2012 will be announced at the end of the year.
So for now you can give till it hurts and at least not pay any estate or gift tax.
Have a happy Labor Day. I am not blogging Monday and will start up again Tuesday the 6th. I will touch on a gift and estate tax problem (potentially). See you then.