Many folks have been asking me about the gifting that they can do throughout December to take advantage of the current gift tax exemption being at $5.12 million.
It is important to understand that while there is a $5.12 million Federal gift tax exemption that is set to go back to $1 million on January 1st without Congressional action, Connecticut residents are subject to a Connecticut gift tax on lifetime gifts that exceed $2 million.
So if you are a Connecticut resident and you try and give away the entire $5.12 million Federal gift tax exemption, you could end up with $240,000 in Connecticut gift taxes.
The bottom line here is that you shouldn't take everything you hear at face value without first discussing your personal circumstances with a qualified estate planning attorney. So, if you have questions about this, pick up the phone and contact a Connecticut estate planning attorney. If you would like our contact info, you can click here for our Contact page.