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Gifting Techniques for 2012

The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (the "2010 Act") was enacted on December 17, 2010 and extended the provisions of the Economic Growth and Tax Reconciliation Act of 2001 ("EGTRRA"). The 2010 Act increased the estate, gift and generation-skipping transfer tax exemptions to $5.12 million in 2012. The 2010 Act provides a wealth of estate litigation opportunities that are only available this year as the provisions of the Act will sunset on December 31, 2012.

In an article written by Gallo, Hjorth and Hjorth entitled Pipe Dreams Can Come True: Gifting Opportunities… At Least Through 2012, three gifting techniques were provided that may offer significant advantages in the current environment.

These gifting techniques include:

  1. The Spousal Lifetime Access Trust (SLAT)
  2. Sales to Grantor Trust
  3. Charitable Lead Trusts

We will provide more in-depth discussion of the gifting techniques on subsequent blogs.

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