Potential Benefits of Proper Estate Planning Magnified in 2012 By $5.12 Million Gift Tax Exemption
Attention Business Owners: The Time to Act Is Now!
“The best time to plant a tree was 20 years ago.
The second best time is now.”
You may recognize the Chinese proverb above and it applies to gifts as well: the sooner gifts are made the greater the potential benefits.
Of course, we do not advise our business clients to give away assets they may need in the future. On the contrary, we want them to be doubly sure that their needs are given first priority. However, business owners must face the reality that the IRS may be their largest partner. For every $1 the business owner adds to his net worth, the IRS takes its share in estate taxes, currently 35% but increasing to 55% in 2013 under current law! Proper planning today can save the family millions of dollars in the future.