Recently we reported on the outcome of the fiscal cliff deal as it applied to the parameters of the federal estate tax. When the news first broke the exact amount of the estate tax exclusion was not available. This was because of the fact that the $5 million exclusion that was put into place for deaths in 2011 remained intact, but it is adjusted for inflation annually. Last year the IRS increased the exclusion to $5.12 million after making the adjustment. We have now learned … [Read more...] about Exact Estate Tax Exclusion Figure Now Available
Taxes
Indiana’s Inheritance Tax
Magazine: Don't die in IndianaIn a recent interview with WISHTV.com, estate planning attorney Paul Kraft explains why dying as a resident of the Hoosier state will hit you in your wallet. "Indiana still has an inheritance tax," says Paul Kraft, an attorney and estate planner with Frank & Kraft, Attorneys At Law in Indianapolis, Indiana. However, the amount of inheritance tax will be decreasing every year until 2022, when the tax is eliminated altogether. "The main thing that … [Read more...] about Indiana’s Inheritance Tax
Non-Taxable Gifting: More Possible in 2013
Each year you can give gifts up to a particular limit without the value of these gifts counting toward your available lifetime unified gift/estate tax exclusion. Utilizing this exemption is a great way to transfer funds in a tax-free manner while you are still alive while keeping your available unified exclusion intact. It should be noted that the gifts that you give utilizing this exemption do not have to be direct transfers to the recipients. Funding certain types of trusts that … [Read more...] about Non-Taxable Gifting: More Possible in 2013
Estate Tax Details Set for 2013
When the fiscal cliff deal was reached we finally got some clarity with regard to the estate tax parameters for 2013. "Going over the cliff" as it were would have resulted in a harsh scenario for those who have achieved a bit of financial success. The estate tax exclusion would have been trimmed down to $1 million, and the maximum rate of the tax would have gone up to 55%. In 2012, the estate tax exclusion was $5.12 million. There is a base of $5 million that was implemented … [Read more...] about Estate Tax Details Set for 2013
The Rewards of Giving
Arranging for resources to be given to charity can be part of your estate planning efforts, and this can be a very rewarding way to foster a lasting legacy. To engage in philanthropy you must select a vehicle of charitable giving. There are those who opt for private family foundations, and we are all aware of famous ones such as the Rockefeller Foundation and the Ford Foundation. Very large and well-funded private family foundations are going to be staffed, and there will be … [Read more...] about The Rewards of Giving
The Estate Tax & Your Net Worth
The new year is upon us, and you may want to view this renewal as a signal to consult with your estate planning attorney. There are a number of different reasons why your existing estate plan may be in need of certain revisions. Sudden exposure to the estate tax is one of them. Things do not stand still and this is something to keep in mind as it applies to your estate plan. Your original estate plan is going to be based on a snapshot of your life at the time of its creation. … [Read more...] about The Estate Tax & Your Net Worth
Should Unsellable Sculpture Be Subject to Estate Tax?
The estate tax is very controversial in some quarters, and those who decry the tax often mention the fact that it is an instance of double taxation. You pay taxes all of your life on your income, and whatever you have left over at the time of your passing is the after-tax remainder. The critics ask why this after-tax remainder should be taxed again. The above makes sense, but the death tax is a fact of life at the present time regardless of how you feel about it. To get an idea about just … [Read more...] about Should Unsellable Sculpture Be Subject to Estate Tax?
Charitable Remainder Unitrusts: A Brief Overview
If you want to set up an ongoing income stream for yourself while you simultaneously take steps to provide for your favorite charity, you may want to consider creating a charitable remainder unitrust. With these trusts, you establish a term during which you will receive annual annuity payments that must equal at least 5% and not more than 50% of the fair market value of the trust. When you are establishing the trust you name a charitable beneficiary who would benefit from the trust after … [Read more...] about Charitable Remainder Unitrusts: A Brief Overview
End of Year Signals End of Unique Opportunity
Estate planning should be viewed as an ongoing, dynamic process. Things do not stand still, and events can and do take place that can make an estate plan revision necessary. We are experiencing one of these events at the present time. There are significant changes to the estate/gift tax parameters on the horizon in 2013, and because of these changes you may want to take certain actions before 2012 comes to a close. At the present time the unified gift/estate tax exclusion … [Read more...] about End of Year Signals End of Unique Opportunity
The Estate Tax & Spousal Asset Transfers
The Federal estate tax will be a factor for many additional Americans in 2013. Unless there are changes to existing laws the estate tax exclusion goes down to $1 million next year. (It is currently $5.12 million.) Given this reality you may want to discuss your situation with a licensed Indianapolis estate planning lawyer before the year comes to a close. You may have heard that asset transfers between husbands and wives are not subject to the estate tax. As a result you may … [Read more...] about The Estate Tax & Spousal Asset Transfers
