There was an interesting settlement to an estate tax dispute that was reached recently involving a work of art that cannot be sold. The work in question, a sculptural combine called "Canyon," features a bald eagle that had been stuffed by a taxidermist. It is theoretically very valuable because it is the work of Robert Rauschenberg. However, eagles are a protected species. To prevent people from thinning out the species even further by killing eagles for sale protections were put into place … [Read more...] about Work of Art Donated to Museum to Settle Estate Tax Case
Because laws are always changing, you should develop an ongoing relationship with your estate planning attorney and be proactive about having your plan reviewed on an annual basis. Without periodic reviews, sometimes these changes in the law can render your existing estate plan obsolete. We had some notable changes at the beginning of 2013 after the passage of the American Taxpayer Relief Act of 2012. One of them was an increase in the maximum rate of the federal estate tax from the 35% rate in … [Read more...] about Something Couples Should Know About Portability
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
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?
An interesting set of circumstances is simmering as the election season heats up, and it will affect people who are planning ahead for the future. Currently the estate tax exclusion is $5.12 million and the maximum rate is 35%. We have these figures in place because of provisions in the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This tax relief act is going to expire at the end of this year. As we all know, there's going to be an election toward the end of … [Read more...] about Election Coincides With Tax Relief Expiration
To be optimally positioned at all times you must assume that your estate plan will need adjustments over the years. Some things take place that are out of your control and can interfere with your existing estate plan, and such an event is taking place at the end of this year. The estate tax rules that are in place right now are a result of provisions contained within the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. This act is going to expire at the end of … [Read more...] about Reminder: Estate Tax Exclusion Portability Is Temporary
If you are not aware of the extent of the federal estate tax, the details may come as something of a shock to you. The powers that be are potentially poised to consume an enormous portion of your resources after you pass away, and as a case in point, look no further than the estate of the entertainment impresario Dick Clark. Clark passed away a very wealthy individual, with an estate that is estimated at well into the hundreds of millions of dollars. The estate tax exemption is currently $5.12 … [Read more...] about Value Of Dick Clark Estate May Be Eroded Considerably
Taxes are controversial, and though most people accept that tax revenue is necessary to support our societal infrastructure, you probably don't want to be taxed at every turn, and you probably don't want to be taxed twice on the same income. With this in mind let's take a look at the federal gift tax. You may not realize that some gifts that you give to your loved ones are taxable. The reason why you don't get a bunch of IRS bills in your mailbox around the holiday season is because there is a … [Read more...] about There’s More To Generosity Than Meets The Eye
When you are planning your estate, you should be aware of the potential for asset erosion, and the biggest potential culprit is the federal estate tax. As of this writing the maximum rate of the federal estate tax is set to go to 55% next year, and the exclusion amount is $5.12 million. This means that the portion of your estate that exceeds $5,120,000 would be subject to a 55% federal levy. A lot of people shake their heads with dismay when they consider the federal estate tax. They feel as … [Read more...] about Estate Tax: Selectively Imposed Instance Of Double Taxation?
Being taxed is not something anyone particularly relishes. But when you are taxed more than once on the same money it can be especially disconcerting. This is what we are looking at with the federal gift tax and the estate tax. The possessions you have were accumulated with resources that you had left over after you paid income tax, self-employment or payroll tax, sales tax, property tax and any number of additional taxes. The same can be said of gifts. So a lot of people view the estate tax … [Read more...] about Generation Skipping Trusts Can Keep More Money In The Family