If you’ve read anything about the estate tax under the new Tax Law, you probably know that it won’t apply to you as an individual unless you have more than $5.25 million. If you are a married couple, your estate has to be larger than $10.5 million before you even begin worrying about having to pay an estate tax. So if the estate tax exemption limit is so high, do middle-class families need an estate plan? Absolutely. And here are three reasons why. Guaranteeing Inheritances Estate planning … [Read more...] about Why Middle Class Families Need an Estate Plan
Tax Avoidance
Update on 2013 Estate Tax Law Changes
A key part of the American Taxpayer Relief Act of 2012 (ATRA), the new tax law passed by Congress on January 1st, that was not yet known immediately after the passage of the new law has been released by the Internal Revenue Service. The exact amount of the estate tax exclusion for 2013 has been set at $5.25 million. To understand where this figure comes from you have to go back to the end of 2010 when the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 was … [Read more...] about Update on 2013 Estate Tax Law Changes
3 Practical Effects the Fiscal Cliff Deal Has on Estate Planning
Congress and the President were able to come together at the last minute and avoid the fiscal cliff on January 1st. By passing the American Taxpayer Relief Act of 2012, the government has not only made changes to the tax code but also changes to several provisions that could affect your estate plan. If you have already created an estate plan you may wish to speak to your state planning attorney and ask if any of the changes affect you. Exemptions Under the terms of the agreement the federal … [Read more...] about 3 Practical Effects the Fiscal Cliff Deal Has on Estate Planning
GRAT-itude for Advanced Tax-Saving Planning Option
For many families, an estate plan based upon a revocable living trust may be all that is needed to protect their assets from death taxes. However, for folks with larger estates, it may make sense to look for ways to transfer assets in a tax-free manner. Though there is a gift tax in place there are ways to facilitate tax-free giving if you take the appropriate actions. One such strategy involves zeroing out a grantor retained annuity trust, often abbreviated as a GRAT. How does it work? After … [Read more...] about GRAT-itude for Advanced Tax-Saving Planning Option
