How to Leverage Wealth Transfer In A Tax Favorable Manner


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Opportunities to significantly leverage wealth transfer in a tax favorable manner.

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How to Leverage Wealth Transfer In A Tax Favorable Manner

  1. 1. Once in a LifetimeEstate and Gift Tax Planning OpportunityGENEROUS NEW ESTATE AND GIFT TAXPROVISIONS AVAILABLE THROUGH 2012The most significant provision in the overall extensionof the “Bush Tax Cuts” was to reunify the estate, giftand generation-skipping tax (GST) exemptions andincrease those exemptions to $5,000,000($10,000,000 for a married couple) while reducingthe top transfer tax rate to $35%. These exemptionshave been adjusted for inflation for 2012 to$5,120,000 ($10,240,000 for a married couple).ACT FAST! TRANSFER TAX PROVISIONS“SUNSET” SOONThe increased estate and gift tax exemption and lowertax rate will “sunset” effective December 31, 2012,if Congress takes no action. On January 1, 2013, theexemptions will revert to $1,000,000 and the top estategift, and generation-skipping tax (GST) rate will go backup to 55%. You only have six months remaining to take These factors, when combined with the temporaryadvantage of these provisions and it is unlikely that new expansion of transfer tax exemptions, provide historiclegislation will be passed in a partisan election year before opportunities to significantly leverage wealth transfer in athe legislative “sunset” takes effect. tax favorable manner.WHAT IS THE POTENTIAL ECONOMIC VAL UE HOW CAN I TAKE ADVANTAGE OF THIS WINDOWOF USING THE $5 MILLION LIFETIME GIFT OF OPPOR TUNITY?EXEMPTION IN 2012? To find out how you can take advantage of thisn ould be as much as $7.5 million in Federal transfer tax C unprecedented opportunity, contact your local CBIZ MHM savings alone* tax specialist. For more information or to locate your localn usband and wife could double that or realize $15 H CBIZ office, visit us online at million in tax savings*KEY ASPECTS TO CONSIDER:n conomic challenges continue and real estate and E business values are still depressed.n aluation discounts are still available under existing V law for partial interests in real estate as well as “lack CBIZ MHM, LLC of marketability” and minority interest” discounts for * his hypothetical scenario assumes the use of a discount T closely held businesses. vehicle for non-cash gifts, a 45% federal estate tax rate atn RS applicable federal rates that impact certain I death, a 6% net return before income taxes, and that the planning vehicles are still at historically low levels Donor/ Grantor pays all the income taxes generated by the (1.2% in June 2012). gifted assets over 15 years.