The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 provides for increased gift, estate and GST tax exemptions through the end of 2012. There is a rumor that the 12-member Congressional Super Committee may reduce this exemption sooner, even as soon as January 1, 2012. The Super Committee is working on legislative proposals to reduce a $1.5 trillion deficit over a 10-year period. Thus, there is a concern that some part, if not all, of the $5 million exemption may be reduced, resulting in missed opportunities for making gifts. Based on discussions with persons on Capitol Hill, Venable’s legislative team believes there is no basis for this rumor.
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