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Exploit Congress's little-known mistake for enormous tax savings before they fix their blunder! |
I'm not sure what Congress was drinking when they passed this one... but one evening, last December, the holiday cheer must have been super spiked.
I watched the spectacle on C-Span. For the first time in more than a decade, there was bipartisan support for a new proposal: the so-called Bush Tax Cut extension. Since it was finally agreed to by both sides, it became the "feel-good" bill of the year.
But suddenly, towards the end of the proceedings, I was jolted into full attention, my eyes and ears glued to the screen. Because someone casually suggested a $5 Million tax break amendment that got a few smiles and nods...
...and then got voted into the bill!
"WHAT did they just do?" I yelled out. This was unbelievable!
But then they went to the next item, as if this outrageous insertion into the bill had never occurred. It looked like a hush-hush arrangement had been included, with as little fanfare as humanly possible. Like some sort of covert payback, or special favor, to parties unnamed.
So under cover of night, Congress had just given you, your spouse, and your posterity...
A Secret $8 Million Dollar Raise!
Now, that's assuming both your spouse and you accept this gift, raising the exemption from $1 Million to $5 Million each. But even better, you can actually increase this gift to an astounding $14 to $16 Million from this amazing gift, if you use the right strategies a high-powered advisor can give you!
And the best part?
If your advisor is sharp, then there's ZERO risk. You don't have to invest a single dime to receive this handout.
But parts of this bill are quite complex. Some of it is deliberately shrouded in mystery, no doubt to limit its benefits to a privileged, politically well-connected few. There are loopholes your financial advisor doesn't know, your attorney won't tell you, and your accountant is afraid to disclose.
That's okay. Because by the time you're done reading this, you'll know exactly what to do.
The only problem is the short amount of time you have to prepare, execute, and accept this gift before Uncle Sam's offer expires.
So let me reveal...
The biggest secret gift the
U.S. government has ever given
This has all the signs of being a stealth amendment -- one intentionally slipped in under the radar. The only reason it wasn't exposed is because of the public outcry it would cause, as one more law to favor "the rich."
Regardless, they kept it so secret, it's likely most people in Congress -- and maybe even the President -- didn't know what they gave out. But if they did, they kept it under wraps, like any good holiday gift.
Either way, there's a genuine urgency to get started, before this brief window slams shut.
Here's the 30-second briefing I've given to some of the most wealthy and powerful people in America:
First, for the years of 2011 and 2012, Washington has raised the ceiling for tax-free inheritance to an astonishing $5 Million.
What this means is that if your net worth is $5 Million, and you pass away this year or next, the federal estate tax would be zero. Any values in excess will be taxed at 35% (unless you or your advisor have appropriate workarounds in place).
But the increase to $5 Million is not the real jaw-dropper...
With this new tax bill, called TRA-2010, Congress also bundled the gift tax and inheritance tax into the same status!
This means that, for a short time, you can now gift $5 Million to your children and grandchildren while you are still alive, since the gift tax is under the same rules as the estate law!
But given that the clock is counting down on this miracle tax break...
Now is the time to go on offense!
Some people may be breathing a sigh of relief at this point, if they've been worrying how to transfer significant portions of their wealth without penalty.But don't drop your guard.
Because there are five key reasons you should immediately spring into action:
TRA-2010, the bill that established this tax break, will sunset in 2012 -- and the Estate Tax Exclusion will be slashed to a mere $1 Million! To be blunt: unless you plan on dying this year or next, you must act before it expires to be covered by it.
And when you do, those changes will be good for the rest of your life.
But if you do nothing, and the bill sunsets, your time to act will have expired. And with it, perhaps the largest tax break we will ever see in our lifetime.
But even more important: 2012 may sound far off, but it's just a few short months away...
...and in any one of those months, Congress could wake up and patch this gaping hole they left in the tax code.
More on this in a moment. But for now, know that you need to exploit this opening while you can!
This bill, TRA-2010, presents you with a 3-pronged gift without historic equal:
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The Federal Estate Tax exclusion: you can exclude a full $5 Million of your net estate, should you pass away in 2011 or 2012.
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The Lifetime Gift exclusion: in addition to the $13,000 you're already allowed to gift tax-free every year, you may now also give a one-time lifetime gift of $5 Million! In other words, if you only had one child and were single, you could actually transfer $5,013,000 this year without incurring a gift transfer tax!
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The Generation Skip exclusion: for the first time in history you now can chose to skip a generation and use the brand new, one-time $5 Million lifetime gift allowance by giving to your grandchildren! And this will not incur a gift tax or an extra generation skipping tax.
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Such an opportunity for planning your estate is unprecedented!
Because of this unprecedented federal generosity, many tax-greedy states are extending their claws to grab a larger piece of your legacy. Some are preparing to increase their tax rates, taking advantage of the "extra money" you'll be able to keep from the lavish $5 Million limit that feds granted individuals.
Only appropriate estate-planning techniques BEFORE such state tax hikes are passed can defeat such attacks on your wealth.
Some members of Congress have already caught on to this, and they're fighting mad! So, what's this hidden provision? I'll give you a hint: it involves using an exclusive trust. But certain members in Congress have caught on, and already have prepared two bills to rescind this provision.
Don't be surprised if they reconvene on this issue. It becomes all the more necessary that you act now, and join us when we hold our Disinherit the IRS Summit (more on this later).
Even if you are well below the current two-year, $5 Million limit, consider how your net worth could grow with a booming stock market -- which many experts predict in 2011 -- or even with the expansive effects of compound interest.
Allowing for growth is a necessary part of responsible estate planning. Many people are unpleasantly surprised with the tax consequences of unexpected appreciation of their assets -- so proper planning always makes provisions to minimize the tax impact of future growth. And there will never be a better time in our life to exploit an opportunity to this extent!
This little-known information, and its myriad strategies of implementation, is of critical importance to every high net-worth individual in America.
But you must start with a
sophisticated advisor, experienced in
working with high net worth clients
I don't mean to sound snobbish. But the reality is, too many advisors are oblivious to the fact that each situation is different. So they try to stuff you into some sort of one-size-fits-all plan.
A sophisticated advisor, on the other hand, knows how to maximize your benefits according to your unique situation – choosing from an entire suite of instruments only the ones that benefit you the most.
That kind of sophisticated advice is what we offer. And whether you have a net worth of one million, or one hundred million, our team of estate planning specialists are the best choice to serve you.
