Gifting offers certainty in uncertain times

Description

Abstract: Uncertainty about the future of the estate tax makes planning a challenge. Planning based on the exemption amount is difficult when it’s not clear what that amount will be — or if there even will be an estate tax. Fortunately, gifting remains a powerful tool that can provide significant benefits regardless of what Congress does. This article discusses leveraging the annual gift tax exclusion, using trusts or family limited partnerships (FLPs), and making taxable gifts, while a sidebar shows how a qualified terminable interest property (QTIP) trust can be used to hedge one’s bets.