Two Year Gift Tax Window

For 2011 and 2012 the estate tax and gift tax lifetime exclusion is $5 million and the tax rate above the exemption is 35 percent.  After 2012, the exclusion is $1 million and the tax rate above the exclusion is 55 percent.  The government will need more revenue.  You have a two-year, one time only window of opportunity in 2011 and 2012.

Estates can be reduced by up to $5 million per person.  A husband and wife could transfer up to $10 million to their families without the federal government getting ANY TAXES!  Any amount transferred over one million in the next two years is a gift…Ha! Ha!  You deserve to know about this time sensitive, limited offer!  You will be amazed to discover that you can leverage that gift into tens of millions of dollars transferred using life insurance and an irrevocable life insurance trust.

Here’s an example on a grand scale.  You have $30 million in assets.  Let’s say sixty or seventy percent of that value is in a business.  By gifting up to $10 million (husband and wife) to a trust and buying life insurance with it, you could preserve your estate for your family.  You could then spend or invest or save the rest of your estate without any concern for the preservation of it.

It is an amazing one time only opportunity.  If you read the article I am sharing below, the client in the article said this, “Why should a guy who worked long hours and took a lot of risk have to pay tax on what he wants to pass to his children?”  Why indeed!

Title: The $5 Million Tax Break (The Wall Street Journal, January 29‐30, 2011; section B, page 7)

Kelly O’Connor –


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