Do you need to worry about the Estate Tax?
For the past decade the Estate Tax has been a hot-button political issue
in Congress. The federal Estate Tax briefly went away in 2010 but came
back this year with a vengeance. But for all the political and media
rhetoric, is this really something you need to concern yourself with?
For most of us, the answer will be "no" — at least when it comes to the
federal Estate Tax. Under current law the first $5 million of a person's
estate is exempt for federal Estate Tax purposes.
But a number of state governments impose their own estate taxes at far
lower thresholds. In Maryland, for example, the state estate tax applies
to any estate with over $1 million in assets. In many cases that figure
can be reached with just a home and a few stocks. And while the estate
tax generally permits an exemption when leaving assets to a spouse,
you will still need to plan for the death of the second spouse, when his
or her estate will be fully subject to any estate tax.
A qualified estate planning attorney can help you minimize the risk of
federal and state estate tax liability. There are a number of estate
planning tools, including making gifts during your lifetime, Living
Trusts and charitable trusts, that can affect the size of your taxable
Experienced estate planning attorneys Greensboro NC of the Law
Offices of Cheryl David offers estate planning and business planning
resources to residents of Greensboro NC. To learn more about these free
resources, please visit http://www.cheryldavid.com today.