"The 2011 Tax Law"
The 2011 Tax Law While most folks can breathe a sigh of relief regarding the provisions of the 2011 tax law, this relief will only last for the years 2011 and 2012. If you’re not planning on giving away all of your assets or dying during the next two years, the 2011 tax law will likely affect you and your family. Technically speaking Technically speaking, the 2011 tax law affects everyone who is reading this article. However, that does not mean that everyone has to pay tax. Clip your coupon The tax law gives each and every person a big coupon that they can use to pay transfer taxes (gift, generation skipping, or federal estate taxes) on any transfers made in 2011 and 2012. This coupon allows you to transfer up to $5,000,000 during your life or at your death without incurring federal taxes. Married couples Married couples are entitled to “double coupon days.” And, they can pass up to $10,000,000 tax free, using their coupon to pay the transfer taxes. 2013 (and beyond) In the year 2013 and beyond, the coupon is drastically reduced to pay the taxes on the transfer of $1,000,000 per person and $2,000,000 per married couple. At that time, the federal estate tax, gift tax, and generation skipping taxes will affect a whole lot of people. At your death, everything you own is subject to the tax: life insurance, retirement accounts, your home(s), investment accounts, bank accounts, business interests, and personal property. 2010 (a look back) If you are the executor of an estate or the trustee of a trust for someone who died in the year 2010, consult with a qualified estate planning attorney immediately. There are important legal decisions to be made that involve complicated financial analysis. If you have any questions regarding the new 2011 tax law, consult with a qualified estate planning attorney. Experienced estate planning attorneys Seattle WA of the Byrd Garrett PLLC offers estate planning and business planning resources to residents of Seattle WA. To learn more about these free resources, please visit www.byrdgarrett.com today.