VIEWS: 10 PAGES: 1 CATEGORY: Legal POSTED ON: 10/19/2012
You may have heard the term "unified exclusion" if you have started to do any research into the field of estate planning as you look ahead toward your own future
Unified Exclusion Applies to Estate Plus Taxable Gifts You may have heard the term "unified exclusion" if you have started to do any research into the field of estate planning as you look ahead toward your own future. What this is referring to is the amount of resources you can pass along to your loved ones without facing the prospect of paying a hefty tax. The gift tax exists to stand in the way of individuals who would be interested in giving assets to their loved ones directly while they are still alive as a way to sidestep the estate tax. The estate tax and the gift tax are considered to be unified under the tax code. So the exclusion applies to the combination of taxable gifts that you give coupled with the actual value of your estate. You may hear reference to a $5.12 estate tax exclusion, but this is the unified exclusion that applies to the combination of taxable gifts as well as your estate. It should be noted that this $5.12 million figure is not going to persist beyond the end of this year unless there are changes made to current laws. In 2013 the exclusion is scheduled to be reduced to $1 million and the maximum rate is rising to 55% from the 35% that is in place for the rest of this year. Though gifts that you give can be counted against your available exclusion you do have some leeway. The first $13,000 that you give away to any individual in a given year can be transferred tax-free. Utilization of this exemption can come into play when you are funding a tax efficiency vehicle such as a family limited partnership. If you would like to learn more about taxes on asset transfers and how to mitigate your exposure don't hesitate to pick up the phone to arrange for a consultation with a good Indianapolis financial planning lawyer. Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers estate planning and business planning resources to residents of Indianapolis IN. To learn more about these free resources, please visit http://www.frankkraft.com today.
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