12/4/2012
Act Now Before Fiscal Cliff Impacts Gift Tax Exemption
Now that the election is over and the holidays have begun, taxes and the impending fiscal cliff are on everyone’s mind. While you may not be able to do anything to force Congress into action, you can take steps to fix your own will or trust and capitalize on existing gift tax exemptions before they expire.
It can’t be said enough how important it is to act now to take advantage of current estate and gift tax laws that are set to expire at the end of the year. Though delay is common when it comes to estate planning, there’s only a very limited window left to act before the fiscal cliff leads to unimagined changes to the tax code.
A recent article regarding important estate-planning tips for attorneys to consider mentioned the importance of a powerful estate-planning vehicle with a funny acronym. The article discussed how a QTIP trust could serve as an important piece of an overall Alabama estate plan.
First things first, let's be clear that we aren't talking about a little stick that's meant for your ear. QTIP stands for "qualified terminal interest property" trust. Qualified means it's property that is qualified for the marital deduction. Terminal means the surviving spouse gets the income interest during his or her lifetime, but that interest terminates at his or her death.
The Wall Street Journal ran an interesting article last weekend examining the extent to which gift givers can exert control over their heirs once they are dead and gone. The article reveals several things that might surprise you given the scope of control that can be included in the language of trusts and 
You really need to think it through before you add someone's name to your Alabama deed because it could cause a lot of unintended pain. Theoretically, adding your child's name to the deed to your home is a good move because it's a way to avoid the time and expense associated with probate. But doing so could create problems for you for a number of reasons.
A "living trust" is simply a trust you create while you're alive, rather than one that is created at your death. Different kinds of living trusts can help you avoid probate, reduce estate taxes, or set up long-term property management.
The following discussion concerns different categories of assets and whether transfer into a living trust makes sense. First up: real estate. If you are like most people, the most valuable thing you own is real estate. Many people create a living trust just to make sure a house does not go through probate. Substantial probate costs can be saved by transferring real estate through a living trust which is why so many people are interested in creating living trusts for the property they own.