Tax Free Gifts Quadrupled in US When Congress Raised Limit | White & Case LLP International Law Firm, Global Law Practice
Tax Free Gifts Quadrupled in US When Congress Raised Limit

Tax Free Gifts Quadrupled in US When Congress Raised Limit

In December 2010, Congress voted to raise the limits on tax-free gifts to as much as $5 million, spurring an increase by billions in nontaxable gifts. Recognizing the ephemeral nature of the law, set to expire in December 2012, wealthy Americans scrambled to transfer assets out of their estates into nontaxable gifts.

"2012 was even more intense," said John Olivieri, an estate-planning attorney and partner in the private clients group at White & Case. "As it got nearer to the end of 2012 and there was no extension in sight, that’s when everyone started doing trusts."