Federal estate, gift and generation skipping transfer (GST) exemptions have been temporarily increased to an all-time high of $5,000,000 for the two-year period ending on December 31, 2012, at which time they are scheduled to "sunset," with the gift and estate tax exemptions returning to $1,000,000 and the GST exemption being reduced to approximately $1,360,000. Although there have been some indications that Congress will not allow the exemptions to fall so dramatically at the end of 2012, this is far from certain. The combination of the current increased lifetime gift exemption and the current low-interest-rate environment offers a unique opportunity to make gifts to children and/or grandchildren, outright or in trust. This important tax planning opportunity may significantly reduce estate taxes and increase the amount individuals are able to leave to their families.