Year-End Gifting in Connecticut for 2012

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.

Categories: Estate Planning, Gifting, Taxes