Matthew Cavanaugh for The New York Times..Published 11-13-2010: Photo by Matthew Cavanaugh for The New York Times Leiha Macauley, a partner at Day Pitney, says one option for clients is to set up a trust that allows someone to put in cash now and exchange it for other assets in the future.

With the tax talks in Washington seemingly at an impasse, no one knows for sure what will happen to the now-generous gift tax exemption. But the tax lawyers and advisers Paul Sullivan spoke to for his Wealth Matters column this week said the wealthy have been scrambling in recent weeks to make gifts before the exemption — now at $5.12 million a person — expires at the end of the year.

Of course, all the worries about a drop in the gift tax exemption may be for naught. President Obama and House Republicans may agree at the last minute to keep the exemption where it is.

The gift tax may not be a concern for many Bucks readers. But is all the talk about taxes and the so-called fiscal cliff affecting your financial thinking? Are you worried about higher taxes in the new year and, if so, is that affecting your holiday shopping?

Tell us your thoughts in the comment section below.

Article source: http://bucks.blogs.nytimes.com/2012/12/14/the-gift-tax-and-other-tax-worries/?partner=rss&emc=rss