Estate Tax Parameters In Flux
2012 is going to be an interesting year in the field of estate planning because there are significant
Due to provisions that were contained within the Tax Relief, Unemployment Insurance Reauthorization
and Job Creation Act of 2010 the estate tax exclusion is $5,120,000 this year and the maximum rate of
the tax is 35%.
As a result, it can seem as though you have nothing to be concerned about if your estate is worth less
than this amount. However, the aforementioned tax relief act is going to expire at the end of 2012. If
this takes place without Congress making any revisions to existing laws, there will be changes in 2013.
The schedule that is currently in place calls for a reduction of the estate tax exclusion to $1 million
when 2012 comes to a close. In addition, the top rate of the tax is set to rise to the 2001 level of 55%.
So if you plan on living beyond the end of this year and your estate is worth more than $1 million you
do indeed need to explore tax efficiency strategies.
It should be noted that a similar situation took place at the end of 2010 when the Bush tax cuts were set
to expire. If the tax relief act of 2010 didn't pass we would have been faced with a $1 million exclusion
and a 55% maximum rate in 2011.
Given the state of flux that we are presently presented with, 2012 is a good year to sit down and review
your estate plan with a good San Bernardino Estate Planning lawyer.
Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate
planning and business planning resources to residents of Redlands CA. To learn more about these free
resources, please visit www.san-bernardino-elder-law.com/ today.