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By May 2, 2012October 24th, 2018Estate Planning Blog, Robert Lamm
Bob Lamm

Robert Lamm

“Taxmageddon” is the word being used to describing the massive tax increases on the horizon. Of particular interest to estate planners are the changes to the estate and gift tax and the increase in the capital gains tax. A more detailed discussion can be found by clicking here.

Unless Congress and the President act by December 31, 2012, the credit against the estate and gift tax will fall from $5 million dollars per person to $1 million dollars per person with rates simultaneously increasing from 35% to 55%. In addition, the long term capital gains tax rate is set to increase from 15% to 20% . On top of that, the Obamacare Hospital Insurance Surtax will add an additional 3.8% for investment income over $250,000. For those sitting on the sidelines thinking about whether to make lifetime gifts or sell their business, the time to act is now.