Year-End Tax Planning for 2012
Ask Kiplinger tax expert Sandra Block your questions about how to trim your 2012 tax bill no matter what Congress does: THURS., NOV. 29, 1PM-2PM ET.
My parents both setup irrevocable trusts about ten years ago which are within an FLP controlled by an LLC. They gifted some ownership of the FLP based on the annual exemption each year. My dad has passed, so we can no longer take advantage of his lifetime exemption, but should we consider having our mother gift her holdings to family members thereby utilizing the $5 million lifetime exemption and then live off our Dad's trust to maximize the amount of inheritance they can pass on due to the impending inheritance tax law changes? If we do so, Mother should have plenty, but is it likely the government will use some sort of "claw back" method to tax the moneys after my mother;s death?