NEW OPPORTUNITIES FOR GIFTING A number of recent developments in the tax law and the national economy have combined to make gifting programs more attractive than ever as a crucial part of an effective estate plan. The following is a brief discussion of these developments: The Unified Credit Equivalent amount has been increased to $1 million, thus providing an additional amount of lifetime gifts of $250,500 to $325,000 (depending on your gift tax bracket) that can be made without incurring any gift taxes. Additionally, the annual exclusion, the amount that be gifted annually without utilizing the Unified Credit, has been increased from $10,000 to $11,000. Distributions from Section 529 plans are now totally tax-free if the proceeds are used to pay for educational expenses. Interest rates are at their lowest level in recent history. This allows certain types of leveraged gifts, such as charitable lead trusts, to be structured with a very low gift factor, thus making them more effective for transferring wealth. Additionally, the low interest rates provide lower comparables for our valuation experts when valuing transferred assets. The nation's stock markets have not yet fully recovered from the downfall of the dot.com's and the September 11 tragedy. There are many stocks from good solid companies that the experts tell us are temporarily undervalued. This would be a good time to use such a stock to make an outright gift or as part of the funding of a gifting vehicle, such as a Family Limited Partnership. It is beyond the scope of this letter to discuss in detail these concepts, or other more sophisticated gifting vehicles and techniques, such as private annuities and intentionally defective grantor trusts. We do, however, want to bring to your attention the fact that right now there is a terrific opportunity to revisit, or start, your gifting program. If you have an interest in taking advantage of this opportunity, or in reviewing your estate tax situation, please contact your Mallah, Furman & Company representative or call David Sloan at 305-371-6200 or 954-728-9844. © 2007, Mallah Furman. All Rights Reserved.   The CPA licensure designation is regulated by the State of Florida.   The CVA designation is regulated by the National Association of Certified Valuation Analysts.   Privacy Policy | Legal Disclaimer | Site Map