Indianapolis estate planning attorneys will always remind their clients that estate planning is an ongoing effort. Things don’t stand still, and as time marches on events invariably take place that render your existing estate plan obsolete. If you procrastinate about making the necessary adjustments you could be placing your family members at risk on one level or another.
With the above in mind you would do well to understand the fact that there are some estate tax parameter changes looming just over the horizon. As of this writing the estate tax exclusion is $5,120,000 and the maximum rate of the tax is 35%. So if your estate is worth less than this amount you are exempt from this rather harsh federal levy.
However, these guidelines are going to be replaced at the end of 2012 unless there are legislative changes between now and then that impact the estate tax parameters. At the beginning of 2013 the estate tax exclusion is going down to $1 million and the top rate of the tax is set to rise to the 2001 level of 55%.
We are talking about a tax that will consume over half of the resources that you have that exceed $1 million. This is no trifling matter, and it is something that you are going to want to address before these changes take place if your estate is worth more than $1 million. To develop a plan of action, simply take a moment to pick up the phone and arrange for a consultation with a licensed and experienced Indianapolis estate planning lawyer.
Mr. Kraft assists clients primarily in the areas of estate planning and administration, Medicaid planning, federal and state taxation, real estate and corporate law, bringing the added perspective of an accounting background to his work.