Taxes are scheduled to increase dramatically in 2013. The rates will be changing. See the table below.
|Estate and Gift Tax – Top Tax Rate||35%||55%|
|Estate and Gift Tax Exemption||$5 million||$1 million|
|Interest & Compensation Income||35%||39.6%|
In the current political climate, Congress and the President are not likely to reach a compromise on these issues, and in fact the President wants to make “the rich” pay their “fair share” in taxes.
What does this mean for you? 2012 is a year of opportunity while taxes are lower.
What can be done to minimize the estate tax if the total value of your estate or the combined value of you and your spouse’s estates is in excess of $1,000,000?
Take advantage of the ability to gift up to $5,000,000 per person, outright or in trust.
It is wise to schedule an appointment to review your estate plan before October 1st to see if there are steps you can take to improve your family’s position.
If you wait to the last minute, it may not be possible to put a plan in place before the law changes.