In the News Reuters

Wealth Manager - Time Running Out to Exploit Gift Tax Break

"U.S. gift tax rates are the lowest since the Depression, but advisers say rich clients are refraining from giving money to heirs because they are still reeling from losses they suffered during the financial crisis.

'Many advisers don't want to suggest to a client that they pay a big tax bill before they have to. They like to pretend they can use their magic to minimize taxes, but that never works,' said Handler. However, it could be an easier concept to swallow this year with many investors converting regular IRAs to a Roth IRA, forcing them pay taxes on the funds now to make tax-free withdrawals after they retire. 'They're paying taxes now to save taxes in the future. It's the same concept,' said Handler."

This article appeared in its entirety in the June 7, 2010 edition of Reuters News.