The federal gift tax is unified with the estate tax. There is a $5.25 million unified exclusion in place in 2013 that encompasses all of the taxable gifts that you give along with the value of your estate. In other words, if you gave $5.25 million in gifts that were taxable throughout your life, you would use up this exclusion; and all of your estate would be subject to the estate tax. So giving gifts using the lifetime exclusion is not really in any way preserving your available estate tax … [Read more...] about Higher Tax-Free Transfers Possible This Year
IRS Implements Adjusted Exclusion Figure
Though there were many different possible outcomes, as it turns out, the fiscal cliff negotiations left us without a lot of changes to the estate tax rules. We passed along some of the details in a previous post, but we now know the exact amount of the estate tax exclusion for 2013 after the IRS has adjusted it for inflation. The new legislation calls for the retention of the base of $5 million that was put into place for the 2011 calendar year. In 2012 an adjustment for inflation brought this … [Read more...] about IRS Implements Adjusted Exclusion Figure
Many Parents Put Minor Children at Risk
If you were to ask the typical couple about their priorities, they would almost certainly say that their children come first. In spite of this, a significant percentage of parents with minor children are going through life without an estate plan. Doing this is a calculated gamble. The profound thing about this type of gamble is that you are gambling with the well-being of your children. Do people usually pass away while their children are still minors? Obviously, the answer is … [Read more...] about Many Parents Put Minor Children at Risk
Is a Private Foundation the Right Choice?
It is said that giving is its own reward, and this is certainly true. When you are planning your estate you may find that you are in a position to provide monetary resources to causes that you find to be worthwhile. Making charitable giving a part of your legacy can be a profound undertaking, and for some people it can have spiritual significance. However, in addition to the intangible rewards you can also gain some tax savings when you give to charity. One way of doing so is to create a … [Read more...] about Is a Private Foundation the Right Choice?
How Does “Cliff” Deal Impact Estate Tax?
Throughout 2012 there was a lot of uncertainty about the estate tax parameters that would be in place for 2013. Last year the estate tax exclusion was $5.12 million and the maximum rate of the tax was 35%. These provisions resulted from the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This act was scheduled to sunset at the end of 2012. If Congress had not passed new legislation, the estate tax exclusion would have decreased to $1 million, with an increase … [Read more...] about How Does “Cliff” Deal Impact Estate Tax?
Income, Security, & Savings With Alaska Trusts
Many individuals will choose to avoid probate through the use of a revocable living trust rather than a last will. Since you are placing personal assets into a trust you may think that you are removing these resources from your estate for tax purposes. You may also make the assumption that these resources are out of the reach of litigants or creditors. Unfortunately this is not true. Assets that you placed into a revocable living trust are indeed subject to attachment and they are considered a … [Read more...] about Income, Security, & Savings With Alaska Trusts
Study: High Percentage of Americans Die With Nothing to Leave Behind
Estate planning is all about arranging for the distribution of your remaining financial resources after you pass away. Many people have quite specific ideas about what they would like to be able to do for their families and they take the appropriate action with the assistance of a good inheritance planning lawyer. However, recording your final wishes in writing is not going to do much good if you have nothing left to leave behind. Researchers are finding that a very significant percentage … [Read more...] about Study: High Percentage of Americans Die With Nothing to Leave Behind
Five Things Your Estate Planning Attorney Needs to Know
If you want to walk out of the office with a comprehensive inheritance plan that perfectly reflects your wishes you must make sure that you fill your attorney in on all relevant details. With this in mind we would like to highlight five things that your estate planning lawyer definitely needs to know. Do Previously Executed Legal Documents Exist? To be certain that your current wishes are carried out to the letter you must let your attorney know if you have ever executed a will or any other … [Read more...] about Five Things Your Estate Planning Attorney Needs to Know
Prenuptial Agreement Provides Protection
When you think about marriage you may envision two fresh-faced and idealistic young people who are head over heels in love with one another. Neither party has had the opportunity to accumulate any significant financial resources but the hopes are high for future success as partners in life. Under this scenario a prenuptial agreement may seem unnecessary and even kind of cold. The truth is, a prenuptial agreement may not be appropriate for young couples entering into their first … [Read more...] about Prenuptial Agreement Provides Protection
Is A Last Will Really The Simple Solution?
There is nothing wrong with looking for simple solutions. Why make things more complicated than they have to be? In fact, even in science and math it is widely accepted that the simplest solution is generally the most elegant and therefore the best one. With this in mind you may see the value in looking for simple solutions when you are planning your estate. This makes a lot of sense, and because the last will is the most commonly understood estate planning document, you may think that this is … [Read more...] about Is A Last Will Really The Simple Solution?
