To follow up on our October post on President Obama’s proposed $5 million lifetime gift tax exemption reduction; it looks like it might happen even earlier than previously thought. Apparently his Joint Select Committee on Deficit Reduction, aka the Super Committee, is scheduled to present its recommendations for debt reduction to Congress on November 23, 2011. This means that Congress will have to vote on their recommendation to either reduce or eliminate this exemption by December 23, 2011. That said, it is important to note that most people believe that the Super Committee will fail to present anything since they don’t have to because the reductions aren’t going to take effect until 2013.
To sum it up, while the deadline of November 23rd is close at hand, only a few think they will have a solution or even a partial solution by that date. For more information, we suggest you read “You Might Want to Start Gifting Early – and I Don’t Mean the Holiday Variety.”