The Law Firm of Pozzuolo Rodden, P.C. Releases "Should I Make A Gift To My Children To Take Advantage Of The Elevated 2012 Unified Credit Amount...?"

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This article discusses the importance of taking advantage of the Elevated 2012 Unified Credit Amount and how to protect against unforeseen uncertainties.

The Law Firm of Pozzuolo Rodden P.C., announces the release of the article " Should I Make A Gift To My Children To Take Advantage Of The Elevated 2012 Unified Credit Amount And If So, How Do I Protect Against Unforeseen Uncertainties Among My Children? " Below is a sample of the first couple of paragraphs. If you would like to read more, please read the full article and other corporate law or estate planning topics at http://www.pozzuolo.com/Pubs_Newsletters.shtml

Should I Make a Gift to My Children to Take Advantage of the Elevated 2012 Unified Credit Amount and If So, How Do I Protect Against Unforeseen Uncertainties Among My Children?

Yes, you should make a gift to take advantage of the elevated 2012 United Credit Amount. The window is closing. Unless Congress acts by December 31, 2012, the opportunity to lock in the current Estate and Gift Tax Exemption of $5 million will disappear and shrink to a $1 million exemption on January 1, 2013. Gifting this year allows someone to remove up to $5 million from his Gross Estate and potentially avoid in excess of $2 million of additional Federal Estate Taxes. Thus, it is highly beneficial to gift in 2012.

However, many times the potential beneficiaries are younger generations including minor children and minor grandchildren. At the time when they are toddlers, children, and teenagers, how can a person make a gift in trust now, but help ensure the funds go where needed? Simply splitting funds equally among five children is equal. However, there is a difference between equal and equitable as equal is the same dollar amount whereas equitable simply means what is fair and just. A simple equal split may not be equitable when one child has a greater legitimate need due to medical problems, humanitarian choice of career, or a sudden tragic life altering events. A sprinkle trust is the solution to this by providing the trustee with an absolute discretion to “sprinkle” the funds among the various beneficiaries as he believes equitable, but no obligation to make any payments to any particular beneficiary. For example, even if the children are not minor, if funds are split between the five children equally..............

If you would like to read more, please read the full article "Should I Make A Gift To My Children To Take Advantage Of The Elevated 2012 Unified Credit Amount And If So, How Do I Protect Against Unforeseen Uncertainties Among My Children? " " and other corporate law or estate planning topics at http://www.pozzuolo.com/Pubs_Newsletters.shtml

Pozzuolo Rodden, P.C. provides specialized cost-effective legal services to privately held business owners and high-net-worth clients in Pennsylvania and New Jersey in excess of 35 years.

Practice Areas:

Business planning and transaction, complex business litigation, commercial real estate and development, construction law and litigation, advanced estate planning and administration, tax and pension law, high profile and intricate family litigation, and employment law and litigation.

Pozzuolo Rodden, P.C.
Counselors at Law
2033 Walnut Street
Philadelphia, PA 19103
215-977-8200
http://www.pozzuolo.com

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Joseph R. Pozzuolo, J.D., B.B.A.
Pozzulo Rodden, PC
215-977-8200
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