Opportunities to significantly leverage wealth transfer in a tax favorable manner.

1. Once in a Lifetime
Estate and Gift
Tax Planning
Opportunity
GENEROUS NEW ESTATE AND GIFT TAX
PROVISIONS AVAILABLE THROUGH 2012
The most significant provision in the overall extension
of the “Bush Tax Cuts” was to reunify the estate, gift
and generation-skipping tax (GST) exemptions and
increase those exemptions to $5,000,000
($10,000,000 for a married couple) while reducing
the top transfer tax rate to $35%. These exemptions
have been adjusted for inflation for 2012 to
$5,120,000 ($10,240,000 for a married couple).
ACT FAST! TRANSFER TAX PROVISIONS
“SUNSET” SOON
The increased estate and gift tax exemption and lower
tax rate will “sunset” effective December 31, 2012,
if Congress takes no action. On January 1, 2013, the
exemptions will revert to $1,000,000 and the top estate
gift, and generation-skipping tax (GST) rate will go back
up to 55%. You only have six months remaining to take These factors, when combined with the temporary
advantage of these provisions and it is unlikely that new expansion of transfer tax exemptions, provide historic
legislation will be passed in a partisan election year before opportunities to significantly leverage wealth transfer in a
the legislative “sunset” takes effect. tax favorable manner.
WHAT IS THE POTENTIAL ECONOMIC VAL UE HOW CAN I TAKE ADVANTAGE OF THIS WINDOW
OF USING THE $5 MILLION LIFETIME GIFT OF OPPOR TUNITY?
EXEMPTION IN 2012?
To find out how you can take advantage of this
n ould be as much as $7.5 million in Federal transfer tax
C unprecedented opportunity, contact your local CBIZ MHM
savings alone* tax specialist. For more information or to locate your local
n usband and wife could double that or realize $15
H CBIZ office, visit us online at www.cbiz.com.
million in tax savings*
KEY ASPECTS TO CONSIDER:
n conomic challenges continue and real estate and
E
business values are still depressed.
n aluation discounts are still available under existing
V
law for partial interests in real estate as well as “lack CBIZ MHM, LLC
of marketability” and minority interest” discounts for * his hypothetical scenario assumes the use of a discount
T
closely held businesses. vehicle for non-cash gifts, a 45% federal estate tax rate at
n RS applicable federal rates that impact certain
I death, a 6% net return before income taxes, and that the
planning vehicles are still at historically low levels Donor/ Grantor pays all the income taxes generated by the
(1.2% in June 2012). gifted assets over 15 years.