Super Committee May Target Gift Tax For Deficit Reduction

The Joint Committee on Deficit Reduction (also known as the Super Committee) is charged with reducing the current deficit by $1.5 trillion by both cutting the budget and raising revenue. One plan that some speculate the committee will implement is to reduce the threshold for the estate and GST tax to $3.5 million and $1 million for the gift tax. As a result, Dave Berek of Handler Thayer, LLP urges families to do their tax planning now given the uncertainty and potential changes that are coming in the near future.

See Handler Thayer, LLP, "LEGISLATIVE RISK - Super Committee Warrants Immediate Consideration of Your Long Term and Short Term Estate Planning By Year End," MarketWatch.com (Oct. 27, 2011).

Posted by Adam Bair, Associate Editor, Wealth Strategies Journal