Some Observers Decry Estate Tax Rate
Where do you draw the line when it comes to a tax rate? This is an ongoing question that is always
being debated among lawmakers.
However, even the most zealous pro-tax advocates may have to concede that a tax that consumes the
majority of the resources in question is a bit excessive. This will be the case with the federal estate tax
in 2013, assuming the laws that are in place as of this writing remain in effect.
In 2012, we have a 35% maximum estate tax rate and this is certainly not a small pittance. But when
the tax relief act that was signed into law in December of 2010 expires at the end of the year, the law
mandates an increase in the top rate of the estate tax. In 2013 the rate will be 55%.
Clearly, a tax of this magnitude can have an enormous impact on future generations of your family
because it would be imposed generation in and generation out.
The matter is not permanently closed however because many people feel that the rate is excessive.
Others call for a repeal of the estate tax altogether, and there have actually been measures proposed
by legislators that would repeal the estate tax.
Until and unless the estate tax is in fact abolished, action is required if your resources exceed the
exclusion amount (which will be just $1 million in 2013). There are legal steps that can be taken to
mitigate your estate tax exposure, and this is something you should discuss with your attorney sooner
rather than later.
Experienced estate planning attorneys Campbell CA of the Law Office of Roy W. Litherland offers
estate planning and business planning resources to residents of Campbell CA. To learn more about
these free resources, please visit www.attorneyoffice.com/ today.