When people try to make the case that the estate tax should be permanently repealed one major prong of their argument is the fact that it is an exercise in taxing monies that have already been taxed. When you look at it objectively, any assets that you have been able to accumulate were acquired with the money that you had left over after paying income and payroll tax. And in addition to this you paid all kinds of additional taxes at every turn throughout your life, from property tax … [Read more...] about Estate Tax Savings, Asset Protection With GSTs
Taxes
Estate Tax: Not Just Applicable To The Wealthy
There is a common misconception out there that can get you into some vulnerable territory when you are planning your estate. Some people think that the estate tax is only levied against "the wealthy," but of course that is going to depend on your definition of wealthy. Due to the enactment of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, the estate tax exclusion is $5 million at the present time. This means that only the portion of your … [Read more...] about Estate Tax: Not Just Applicable To The Wealthy
Keeping Up With Estate Tax Changes
The thing about planning your estate that is important to remember is the fact that it is an ongoing process because things do not stand still. Some of the changes that take place that result in the need to alter your estate plan are specific to your own life. You may have a significant change in your financial standing and/or the nature of your assets, and this can impact the strategy that is ideal for you. In addition, personal matters within the family can be a factor, such … [Read more...] about Keeping Up With Estate Tax Changes
Unified Gift/Estate Tax Can Be Misunderstood
Right now the top rate of the estate tax is sitting at 35%; this is more than a third of the taxable portion of all the assets that you have been able to accumulate throughout the entirety of your life, all taken from your family in an instant. If that wasn't bad enough, if the laws stay as they are at the present time the maximum rate of the estate tax will go up to 55% in 2013. No, that is not a typo. The top-rate of the tax was 55% in 2001 and that is where it will return to … [Read more...] about Unified Gift/Estate Tax Can Be Misunderstood
A Look At Qualified Personal Residence Trusts
You have to keep potential estate tax liability in mind when you are planning your estate. Right now the estate tax exclusion is $5 million, which means that the portion of your estate that exceeds this amount is subject to the estate tax. At the present time the maximum rate of the tax is 35%, which is quite a bite. However, you cannot rest easy if your estate is worth at least $1 million but less than $5 million. When the Tax Relief, Unemployment Insurance Reauthorization, … [Read more...] about A Look At Qualified Personal Residence Trusts
Reaction To New Gift Tax Rules
Most people who have an interest in estate planning are aware of the fact that the parameters of the estate tax changed as a result of the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010. We now have a 35% maximum rate of taxation and a $5 million exclusion. What was lesser publicized is the fact that the gift tax is also carrying a $5 million exemption and 35% top rate to mirror the estate tax with which it is unified. The … [Read more...] about Reaction To New Gift Tax Rules
New Round Of Estate Tax Wrangling On Tap
Toward the end of last year the topic that was on everybody's mind within the financial planning community was that of the possible sunset of the tax cuts that were part of the Economic Growth and Tax Relief Reconciliation Act of 2001. If they were to expire, the estate tax would be carrying a $1 million exclusion and 55% maximum rate, which were the numbers that were in place back around the time that the Bush tax cuts were initially passed and signed into law. As a result of the … [Read more...] about New Round Of Estate Tax Wrangling On Tap
Charitable Remainder Unitrusts At A Glance
During the summer of 2010 there was an interesting story circulating throughout the financial community about a challenge that was issued by two of the most notable billionaires in the world. Bill Gates and Warren Buffett reached out to the richest people in the United States asking them to pledge to give away at least half of their wealth throughout their lifetimes. Buffett himself has given billions to the Bill and Melinda Gates Foundation, so he is indeed "walking the … [Read more...] about Charitable Remainder Unitrusts At A Glance
Should Estate Tax Be Repealed?
We recently saw a reduction in the rate of the estate tax and an increase in the exclusion amount with the passage of the new tax relief bill in the middle of December. At first glance this may seem like a positive development, but let's take a closer look at the matter from a purely objective perspective. The estate tax was repealed during the 2010 calendar year, but in 2009 the rate of the tax was 45% and the exclusion was $3.5 million. If the Tax Relief, Unemployment Insurance … [Read more...] about Should Estate Tax Be Repealed?
Medical Gifts Provide Mutual Benefits
It is often said that generosity is its own reward, and most people would agree that this is certainly the case. But when it comes to estate planning, there are a number of different ways that you can give generously while receiving something back at the same time, and tax-free gift giving is one of them. It would make a lot of sense to simply give gifts to people that you love while you are still alive so that 35% of your hard-earned assets are not swallowed up by the estate tax. … [Read more...] about Medical Gifts Provide Mutual Benefits
