“With the expiration of the 2010 Tax Act, we will likely enter an era of far less favorable tax treatment—especially for individuals considering gifting as a tactic to minimize estate tax down the road,” says Attorney Richard Morgan.
(PRWEB) March 16, 2012
To warn Americans of the impending expiration of the 2010 Tax Act and its benefits, attorneys Richard Morgan and Loraine DiSalvo have launched a real-time countdown clock on their site. They are also posting expert articles detailing the effects of the expiration and the ways in which individuals can protect their assets now, before the law expires.
“With the expiration of the 2010 Tax Act, we will likely enter an era of far less favorable tax treatment—especially for individuals considering gifting as a tactic to minimize estate tax down the road,” says Attorney Richard Morgan. “This year, the lifetime federal gift tax exemption is $5.12 million, which is significantly higher than it has ever been. Given the ongoing federal debate about taxes and the deficit, this may be a once in a lifetime opportunity, especially for those who had previously reached the previous $1 million lifetime exemption threshold.”
Next year, Morgan said, the exemption is scheduled to drop back to $1 million, and there is currently no plan for it to increase. Consequently, this may end up being a “use or lose it” opportunity for wealthier individuals and families to potentially save millions of dollars.
Although the significantly increased Gift Tax exemption is not the only estate-related benefit of the 2010 Tax Act, it is one of the few options living individuals can exercise.
“Depending on the situation,” said Morgan. “Anyone with a significant amount of wealth to protect for their heirs should gift often and soon in 2012—and have their personal situation reviewed by a professional as soon as possible,” Morgan said. “Many people view estate planning as a complicated, unpleasant process. In reality, 2012 may be the last year that a reasonably simple mechanism—gifting—can offer so much relief from federal taxation.”
About Morgan and DiSalvo
Morgan and DiSalvo, PC is a partnership between Attorneys Richard Morgan and Loraine DiSalvo. Their reputation for personal service and compassion, combined with their expertise in estate planning, tax law and dispute resolution, has earned Morgan & DiSalvo the highest possible Martindale-Hubbell Peer Review Rating every year since the firm’s inception in 1995. For more information visit http://www.morgandisalvo.com.
Note to Editors: Attorney Richard Morgan is available for in person or phone interviews on the 2010 Tax Act and a number of other tax law issues.