Currently, federal law provides a lifetime gift tax exemption of $5.12 million, per person. If Congress takes no action, beginning 2013, the exemption will drop to just $1 million.
Because of this impending change in the gift tax exemption, alot of estate planners are recommending that their clients make significant gifts of assets, real property and business interests to their children and grandchildren.
However, appraisers, in particular those that specialize in valuation discounts for gifts of business interests, are getting swamped with requests. Often the turn around time of one to two months is being doubled. While a gift tax return for a 2012 gift won't be due until April of 2013, it is preferred to know that exact value of the gifted interest to maximize planning opportunities.
