FSP Article 2013 May

New Estate and Income Tax Rates May Change Perspective for Major Gifts

Fortunately, while no one can predict the extent of asset growth and the exact mortality outcome for a given individual, we can apply a formula to calculate the risk of failure versus the benefit of success with regard to the overall tax planning result for gifts. Two major variables influence the amount of growth required to reach breakeven: the spread between income tax and estate tax rates, and the basis of the asset. However, other considerations exist.

FSP Article 2013 May (Click here to download PDF)