Historic opportunity to gift to loved ones

You can give $5.12 million gift-tax-free now, but that amount is slated to drop to just $1 million on January 1, 2013.

Dec 17, 2012 | Related Links Index Hidden Parent

If you plan on making gifts to loved ones, 2012 offers a historically high lifetime gift tax exemption of $5.12 million per individual and $10.24 million for a married couple. If you go beyond these amounts, the gift tax rate is at a historic low of 35%.

The lifetime gift exemptions are scheduled to drop on January 1, 2013, to lows not seen since 2001: just $1 million for an individual and $2 million for couples married under federal law. The gift tax rate is scheduled to jump to 55% in 2013.

Our analysis finds that, even if Congress extends the current favorable tax rate rules, gifting now may be beneficial.

J.P. Morgan can work with you and your professional advisors to help you evaluate whether gifting now is appropriate for your individual circumstances. We invite you to contact us and a J.P. Morgan representative will be in touch with you.