Q: I heard a rumor that Congress is about to change the rules on gift taxes and cut the lifetime exclusion amount to $1 million (from the current $5 million), effective late this month or next. What have you heard?
— C.R., New York
A: While anything is possible in this volatile economic and political climate, several tax experts say this rumor appears to be groundless.
"It does appear to be just a rumor, and I think it's extraordinarily unlikely" that such a change would win congressional approval, says Catherine Grevers Schmidt, a partner at Patterson Belknap Webb & Tyler LLP and head of the law firm's trusts and estates department.
Even so, Ms. Schmidt adds there "has been a lot of chatter about this" among trusts and estates lawyers recently.
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