To give or not to give in 2011 and 2012 — that is the estate planning question

Now that the gift tax exemption stands at $5 million and the top gift tax rate is 35%, the tax environment is especially favorable for making large gifts. But because the current levels are scheduled to expire after 2012, the question of whether to maximize gifts to children or other loved ones this year and next is a good one. This article takes a look at a few answers, taking into account “clawback” risks and how family limited partnerships (FLPs) and grantor retained annuity trusts (GRATs) fit into the picture. A sidebar looks at the tax-saving power of nontaxable gifts.
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Charitable giving vehicles — CRTs and CLTs offer dual beneficial interests

A charitable remainder trust (CRT) or a charitable lead trust (CLT) can be an important tool in achieving philanthropic and estate planning goals. These “split-interest” trusts — so-called because of their dual beneficial interests — provide for both qualified charities and noncharitable beneficiaries. This article discusses the details of each type of trust.
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Putting the “state” in your estate plan

At least until current tax law expires in 2013, married couples with combined estates worth less than $10 million need not concern themselves with federal estate taxes. However, as federal taxes become less significant, state estate taxes — including inheritance and estate taxes — take on a more prominent role. And, as this article explains, overlooking their potential impact can be costly. But there are strategies that can help.
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Estate Planning Pitfall — You made large taxable gifts in 2010

People who made large taxable gifts in 2010, in anticipation of a higher gift tax rate, might have regretted their decision when Congress maintained the rate for another two years and increased the gift tax exemption. For example, someone making a $1 million gift on Dec. 1, 2010, might, under some circumstances, have owed $350,000 in gift tax. But the gift could have been tax-free if it had been made one month later. This article offers a couple of options that might allow such gifts to be “undone.”
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