As I noted in a post about a month ago we are facing potentially dramatic year-end changes to the federal estate and gift tax. The “exemption amount” could drop from $5 million to $1 million. In any event, it seems like the exemption will ultimately be less than it is now.
This means that for many high net worth individuals, 2012 is a good year to make gifts. It also means that you may have a very valid, independent reason to transfer certain assets (other than for asset protection). That is, a challenge to any transfer you make could be at least partially defended by the fact that there are very important tax reasons to make the transfer this year.