While we don’t know yet what the new estate and gift tax structure will be for 2013, what we do know is that the unprecedented opportunity to pass along wealth via gifts will expire at the end of this month. If you are able to still take advantage of the 2012 rates before they expire, here are some gifting options:
Trusts. Trusts can be helpful for those who wish to limit the beneficiaries’ access to assets while you are still living, as they can be used to hold assets for the benefit of heirs while putting restrictions on the use of those assets. A grantor can also use trusts to benefit multiple generations without incurring a transfer tax.
Outright gifts. Gifts of stock, cash or property can be given to individuals outright; the recipient receives the donor’s basis in the property for tax purposes.
Spousal trust. A spousal trust can be a good choice for married couples that want to use their GST or gift exemption but wish to retain the benefit of the gifted assets.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.