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New Rules on Gift Tax- Essential Estate Planning Rules: WSJ
In December 2010′s tax compromise in Congress, some new rules on gift taxes were released that have a tremendous impact on family businesses.
The main rule change is as follows: In 2011 and 2012, the gift-tax exemption rises to $5 million from $1 million for individuals and to $10 million from $2 million for couples. This is especially relevant to family businesses, and will help families transfer large amounts of stock tax-free. There’s always the chance that the Federal Government could claw back estate taxes if changes are made to the tax code, but for now, this is very relevant.
Here’s a good story from the Wall Street Journal that explains the changes in greater detail.