SOURCE: Succession Capital Alliance

Succession Capital Alliance

November 09, 2012 05:00 ET

With the Election Behind Us, Obama Is Certain to Remove the Tax Relief Act Allowing Singles to Gift up to $5 Million, Married Couples $10 Million, Without a Transfer Tax

High Net Worth Individuals Have Two Months Left to Leverage Gift Exemption Before Tax Relief Act Expires

NEWPORT BEACH, CA--(Marketwire - Nov 9, 2012) - Now that President Obama has been elected to a second term, the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 he signed into law is certain to be removed.

Under the Tax Relief Act, which expires December 31, 2012, high net worth individuals are able to gift up to $5 million per person ($5.120 million adjusted to inflation) or $10 million ($10.240 million adjusted to inflation) per married couple without a transfer tax. Succession Capital Alliance, a firm specializing in life insurance strategies for high net worth individuals, is reminding those who plan to make substantial monetary gifts to their heirs that they have less than two months left to do so.

"As soon as the Tax Relief Act expires December 31, 2012, the monetary gift amount will revert back to the 2001 limits of $1 million per individual," said Julian Movsesian, president of Succession Capital Alliance. "With less than two months, there is still a short window of opportunity for those who have the discretionary assets to take advantage of this increased lifetime gift amount, so that if positioned efficiently, it can multiply to several times that amount at mortality. The use of a life insurance policy would work very well for this purpose and as long as the gift is made before the end of this year, the policy can be issued later for this strategy to still be effective."

Movsesian goes on to explain that gifting a substantial sum to an irrevocable trust does not mean the individual has to relinquish control of the assets after they are gifted. The gift can provide greater estate liquidity to buy assets from the taxable estate, enhance the ability to touch future generations, provide capital to benefit charitable causes, or fund a private foundation.

"It's possible the exemption could be extended, but we haven't heard that it will be, so we are proceeding as if December 31, 2012 is the deadline," added Movsesian. "The more individuals can save on taxes, the more their net worth grows. It's not worth it to take chances."

Founded in 2004, Succession Capital Alliance is responsible for helping agents and advisors nationwide to place more than $28 billion of life insurance protection for affluent families and businesses with a financed premium portfolio that exceeds $2.7 billion. The company works with high net worth individuals to help them maximize their succession capital, understand how they can leverage life insurance to their benefit, and help insurance companies and industry professionals to address a void in understanding life insurance. Julian Movsesian, founder and president of the company, is nationally recognized for creating the premium financing program called Capital Maximization Strategy (CMS), which was introduced in 1996 with the backing of a Fortune 10 Company. CMS has been recognized by the insurance industry as the foundation from which all premium financing programs have evolved. CMS continues to be the largest, longest running, most reputable and respected life insurance premium financing program in the industry. It has benefitted large corporations as well as affluent families and individuals all across the country. Learn more at

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