Recapture Clawback of 2012 Gifts
There is lots of anxiety among attorneys and clients about the scheduled estate and gift tax law change in 2013. In 2012, you can gift up to $5,120,000 without a gift tax. But in 2013, both the gift and estate tax exclusion drop to $1,000,000. The big concern is whether gifts made in 2012 in excess of $1,000,000 will be clawed back or recaptured and subject to estate tax.
I’m attending the Southern California Tax and Estate Planning Forum in San Diego. Jonathan Blattmachr just said he does not think clawback or recapture will be an issue next year. He said Harry Ried has, or will, introduce 2 bills that will prevent recapture. If the chief Democrat in Congress wants to avoid recapture, Blattmachr thinks it’s a good bet recapture won’t be a problem.