There is uncertainty on whether Congress will further extend the Bush tax cuts. Many significant rate changes and other substantive changes will take effect in 2013 should Congress fail to extend the Bush tax cuts. These changes include:

Rollback of the estate and gift tax exemptions from $5.12 million to $1 million;
Rollback of the generation-skipping transfer tax exemption to $1 million
Increases in the tax rate on transfers above the exemptions from 35% to 55%

Individuals who intend to take advantage of the higher exemptions should consider acting now, instead of putting it off at the end of the year as there are certain other factors might need to be considered that might protract the overall process (e.g. obtaining valuations for real estate properties).

*This blog entry was not written by an Attorney and should not be construed as professional legal advice.