Estate Tax Changes Loom Over Horizon
One of the things that you have to keep in mind when you are serious about crafting
your legacy is the fact that updates to your estate plan are probably going to be
necessary. Life does not stand still and events take place that invariably will affect your
long-term planning efforts. Some of these things are specific to you and your family, and
others are out of your control, affecting society as a whole.
One of the factors to consider is the ongoing legislative calendar. Decisions that are
made in Washington can and do affect your estate plan, and this is something to be
Over the next year or so there is an issue that is very relevant to estate planning that will
be playing itself out. Due to the passage of the Tax Relief, Unemployment Insurance
Reauthorization and Job Creation Act of 2010 the estate tax rate is 35% right now, and
the exclusion is $5 million. However, this tax relief act is going to expire at the end of
next year. Under current laws the maximum rate of the estate tax will rise to 55% and
the exclusion will be reduced to just $1 million in 2013.
Statistics indicate that there are over 8 million households with total assets exceeding $1
million. So a lot of families will be exposed to the estate tax in 2013 who are presently
exempt. The good news is that there are steps that can be taken to mitigate estate tax
exposure, but you have to know exactly where you stand in relation to the estate tax
exclusion to know if you need to take action.
It should be mentioned that it is possible that further tax relief legislation could be
passed to change these anticipated 2013 parameters. But given the impetus in
Washington toward reducing the federal debt this is probably not something that you
want to count on.
Experienced estate planning attorneys Mobile AL of Ryan, Hicks, Cumpton & Cumpton
LLP offers estate planning and business planning resources to residents of Mobile AL.To
learn more about these free resources, please visit http://www.epattorneys.com today.