The subject of taxes is always going to be prominent in an election year. Of course, 2012 is an election year, and it is an interesting year in the field of estate planning.
At the end of the year, the tax relief act that was passed in December of 2010 is going to expire. This measure essentially extended the Bush era tax cuts. It provided a $5.12 million estate tax exclusion this year, along with a 35% maximum rate.
As the laws are currently written, these parameters are going to change next year. These changes are going to put a lot of American families into taxable territory. The exclusion is going down to $1 million, and the top rate of the tax is rising to 55%.
The powers that be have the ability to enact legislation that would change the above. It is logical to expect the candidates to debate the issue throughout the election season, so their give-and-take is quite relevant if you are concerned about the future of the estate tax.
Though the prospect of a 55% death tax is harrowing to say the least, there are things that can be done to mitigate your estate tax exposure if you are in fact going to be in possession of resources that exceed the exclusion amount.
The best way to explore the possibilities is to sit down and discuss your situation with a licensed and experienced Campbell CA estate planning lawyer. Your attorney will gain an understanding of your wishes, evaluate your assets, and apprise you of your options with regard to tax efficiency strategies.
- Assisted Living: What is It, and is It Right for You? - October 7, 2021
- Is Your Married Joint Living Trust Too Complicated? (VIDEO) - September 27, 2021
- Litherland, Kennedy & Associates Law Firm Team Joins 2021 Walk to End Alzheimer’s - September 20, 2021