Estate Tax Parameters Subject To Change
After you pass away, the transfer of assets to your loved ones may seem like a relatively
simple and straightforward task. It should be but the realities of the tax code can make it
rather challenging to avoid a significant portion of your legacy being consumed by the
The estate tax packs a considerable wallop! At the present time, the estate tax is 35% of
the taxable portion of your estate if you do not take steps to gain tax efficiency. The
estate tax exclusion stands at $5 million, so that taxable portion would be anything that
you own that exceeds this amount.
Now you may be breathing a sigh of relief about the $5 million exclusion, but it is
important to understand that the parameters that we are working with right now are not
permanent. When the Tax Relief, Unemployment Insurance Reauthorization, and Job
Creation Act of 2010 expires at the end of 2012 the exclusion is scheduled to be reduced
to just $1 million, and the top rate will revert to the 2001 level of 55%. This is the same
situation that existed at the end of last year when the Bush era tax cuts were set to
2012 is an election year and estate tax is a topic that will be on the table throughout the
year. The best way to proceed is to retain the services of an experienced Atlanta estate
planning attorney to guide you through the constantly evolving estate tax changes.
Estate planning attorneys will be fully apprised of all the relevant changes as the happen
and well equipped to advise you accordingly.
Experienced estate planning attorneys Atlanta GA of the Pyke & Associates P.C. offers
estate planning and business planning resources to residents of Atlanta GA. To learn
more about these free resources, please visit http://www.cpyke.com today.