Many people are truly amazed when they hear about the details of the federal estate tax. For one thing, this is a tax that is only imposed on some people and who they are varies in a rather random manner. This is due to the fact that there is an estate tax exclusion, the amount of which changes regularly. At the present time it stands at $5 million, but under current laws when 2013 rolls around the estate tax exclusion will go down to just $1 million. Right now the rate of the tax is 35%, but … [Read more...] about Qualified Personal Residence Trusts & The Estate Tax
One of the things that you should keep in mind when you are planning for the future is that everything is connected. Estate planning is by its very nature connected to retirement planning because your legacy is going to be impacted by your expenses and the overall financial decisions that you make after you retire. With this in mind, you have to get a handle on the expenses that you anticipate, evaluate your projected income, and create an intelligent, holistic plan for the future. To this end … [Read more...] about Federal Cost Cutting Can Impact Your Plan For Aging
Time marches on, and as it does changes invariably take place and a lot of them are going to impact your estate plan. Some of these twists and turns are specific to you and your own life. Divorce and remarriage are prime examples, and these are very common occurrences during our current era. But there are other events outside of your personal control can be relevant to your ongoing estate planning efforts. One of those is changes to the estate tax. As of this writing the maximum rate of the … [Read more...] about Estate Tax Parameters Set To Change In 2013
As with many things, legislators in Washington, DC, often punt issues affecting estate planning and seniors down the road a bit. One of those issues will be pending over the next couple of years, and it is something to be aware of if you are making preparations for the future. You may remember that at the end of last year there was a debate about extending the Bush-era tax cuts. As the laws stood until the middle of December, the estate tax was going to return at the beginning of 2011 after a … [Read more...] about Estate Tax Future Uncertain
Over the course of your life you may have seen a car with a bumper sticker that says something like "We are busy spending our children's inheritances." This is the mentality of some people when it comes to estate planning. They figure their estates will be comprised of whatever happens to be left over after they pass away. However, there are others who take a different approach. They actually have certain things in mind that they want to be able to do for their loved ones. For example, many … [Read more...] about Estate Planning: Do You Have Goals?
People who are engaged in estate planning must be concerned about the looming specter of the estate tax. The current estate tax exclusion is $5 million and the rate of the tax is 35%. So if you have more than $5 million, the portion of your estate that exceeds $5 million will be whittled down by more than a third when it comes time to pass along your legacy to your loved ones. While this might not sound like a problem to the average person, when 2013 rolls around the rate of the estate tax is … [Read more...] about Is the Estate Tax Fair?