It’s certainly a task to find anything positive in the startling drop in stock market levels. As of this writing, it’s unclear whether the drop has ended. Past history suggests that it will end, and possibly soon, and that the recovery could be swift. So, is there anything positive about the recent events? Perhaps this: with values depressed, maybe far more than they should be, this is a good time to make gifts to family members. Gifts are valued at their current fair market values and, under our federal gift tax system, any individual may make gifts of up to $12,000 per year to any number of people without using up any of the gift tax lifetime exemption or generating gift tax. That means that $12,000 worth of gifts right now is more shares of stock, or whatever else is given, than will be the case when values recover. Of course, the downturn isn’t a reason by itself to make gifts, but for those who have been thinking about gifts or who have begun a gift-giving program, this could be a good time to take action. Remember, too, that it now seems clear that we will continue to have a federal estate tax, and that a gift made now can reduce taxable estates by the amount of the gift as well as its future appreciation. There are many ways of making gifts, so please contact us to discuss the best method in your situation.