Change on the horizon for gift and estate tax (as reported by Sharon Epperson via cnbc.com)

Those planning on giving a large amount of money to their children or grandchildren should consider doing it before the New Year. Beginning January 1, 2013, the amount of money parents or grandparents are allowed give to children for education support might change. Currently, the maximum amount that a single person can transfer to their heir without paying gift or estate taxes is $5.12 million and $10.24 million for couples. The new amount might decrease to $1 million and $2 million for couples. In addition the gift and estate tax will increase from 35% to 55%. To read the whole article click here.

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