Understand Tax Laws Before Making Asset Transfers
If you were to enjoy extraordinary financial success one of the first things that may cross your mind
would be to share the wealth with your loved ones. While generosity is almost universally viewed as a
positive trait, you would do well to consider the tax code before you divest yourself of any significant
quantity of resources.
There is a gift tax in place, and it is unified with the estate tax. There is a unified exemption that stands
at $5.12 million right now. This means that the first $5.12 million of any gifts that you give during your
life coupled with your estate as it is being passed to your heirs can be transferred tax-free. The rest is
subject to a 35% tax.
It should be noted that these figures are going to change for the worse in 2013 if we don't see any
legislative measures passed to alter the existing laws. At that time the maximum rate will be hiked to
55% and the exclusion will be shaved down to $1 million.
The point is that if you were to give $1 million in gifts to your loved ones after the unified exclusion is
reduced to $1 million all of your estate would be subject to the estate tax.
That is, unless you are proactive about crafting your legacy with tax efficiency in mind. If you would
like to have a professional evaluate your situation and make the appropriate recommendations, take
action right now to arrange for a consultation with a good Somerset County NJ estate planning lawyer.
Experienced estate planning attorneys Warren NJ of the Augulis Law Firm offers estate planning and
business planning resources to residents of Warren, NJ. To learn more about these free resources, please
visit www.augulislawfirm.com/ today.