Reducing The Taxable Value Of Your Estate
If your estate is valued above a certain amount, your heirs will be faced with the prospect of paying the
federal estate tax. At the present time the estate tax exclusion is $5,120,000 and the rate of the tax is
35%. So the portion of your estate that exceeds the exclusion amount is subject to the 35% tax.
This arrangement is only in place through the end of this year however. The estate tax exclusion is
going down to just $1 million and the rate is rising to 55% when the tax relief bill that was signed into
law in December of 2010 expires at the beginning of 2013.
The estate tax is unified with the gift tax so this current $5.12 million exemption includes both your
estate and any gifts that you give throughout your life. So, in light of the fact that the unified exclusion
is being reduced at the end of the year it may be a good idea to consider giving gifts in 2012.
In addition to this, there is a $13,000 per person annual gift tax exemption that does not impact the
lifetime unified exclusion. So you can give as much as $13,000 annually to any number of gift
recipients free of the gift tax.
To develop an intelligent strategy that reduces the taxable value of your estate you're going to want to
sit down and discuss your unique situation with a good Sarasota Estate Planning lawyer. This is
especially important right around now with changes to the estate tax parameters looming just over the
Experienced estate planning attorneys Sarasota FL of the Co-Executor PLLC offers estate planning and
business planning resources to residents of Sarasota FL. To learn more about these free resources,
please visit http://www.co-executor.com today.