The New York Times reports that while most individuals are fretting over the estate tax lapse in 2010, they should really be taking advantage of the 2010 gift tax rates. Why is that? At 35 percent, a NY estate attorney would tell you that the 2010 gift tax rate is the lowest that it has been since the 1930s. While we have covered this topic before, it is important to bear in mind that the 2010 gift tax can save individuals on taxes. Steve Kunkel, director of taxes at CBIZ MHM told the New York Times: "People are so focused on the estate tax that they're not paying attention to this. People are looking beyond 2010, and in doing so they're going to miss some significant savings this year."
Experts say that not only is the 2010 gift tax favorable, but it is favorable to gift assets to beneficiaries now because the values of these assets are depressed. This means that if an individual gifts assets this year, if the assets increase in value, it will appreciate for your heirs versus your estate.
A NY estate attorney would most likely advise clients to take advantage of the 2010 gift tax while they can because of the return of the estate tax in 2010. However, it is always important to plan your estate with some careful deliberation. Richard A. Behrendt, first vice president and senior estate planner at Robert W. Baird & Company told the New York Times: "I wouldn't be rushing to do this today, but I would be planning. This is not the kind of thing you want to be rushing to do at the end of the year."
If you have questions about how to plan for the return of the estate tax in 2011, how to take advantage of the 2010 gift tax, and how to plan your own estate in general, make sure to call a NY estate attorney.
Related Resources:
- Tax Free Gifts Can Ensure Estates Are Not Hit Hard By Estate Tax (FindLaw's New York Estate Planning News Blog)
- Call A New York Estate Planning Lawyer (FindLaw)
- More New Yorkers Are Hiding Assets (FindLaw's New York Estate Planning News Blog)
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