In 2012, gifts up to $5.12 million are exempt from gift tax. The current law is expected to expire on December 31 and to return to a $1 million exemption. At the same time, the top gift tax rate is expected to rise from 35% to 55%. Keep in mind that the current state tax exemption will decrease from $5.12 million to $1 million as well.

Suggested Action:
Call your attorney immediately if you are considering making gifts in trust to provide ample time for planning and execution of your gifts; or contact one of our trusted advisors, who average over 20 years of estate planning experience, at 585-419-0670 with any questions you may have.

^{Tax information presented is not to be considered as tax advice and cannot be used for the purpose of avoiding tax penalties. Neither Canandaigua National Bank & Trust nor its affiliated Companies provide tax, legal, or accounting advice. Please consult your personal tax advisor, attorney, or accountant for advice on these matters.}