Innovative Strategies For Tax Controversies, Business Structuring And Estate Planning
What the ‘Step-Up Basis’ Tax Rules Mean for Your Family
When you plan for what happens to your things after you die, it is important to understand how taxes might affect what your family receives. If you know the tax rules, you can help your family avoid paying more taxes than they need to.
Estate and Gift Tax Exemption Increases The limit on annual tax-free gifts without interfering with the estate tax exemption has moved from 16,000 to 17,000 per donee for 2023. This means that a couple could give $34,000 to each of their adult children, grandchildren,...
New Jersey has long had the highest state estate tax in the country. Any estate over $675,000 would owe tax to the state of New Jersey. This could be very substantial and was a significant reason for many taxpayers, especially retirees, to move from New Jersey to more...
Not surprisingly, Hillary Clinton is proposing to increase federal estate taxes from 40% to 45%. Right now, the rate starts at 40% for people who die with an estate, including all assets such as insurance, in excess of $5.45 million. Clinton has repeatedly...
Durable Power of Attorney-the Smart Choice! Today I received a frantic telephone call from the adult daughter of a senior citizen client for whom I prepared an estate plan 10 years ago. Unfortunately, the man, who is a widower, had a serious stroke. He is alive but...
A lifetime trust, also known as a living trust, can be the difference between people controlling their estate and being subject to the expense, confusion, and problems that sometimes affect unplanned estates. Nevertheless, a whole industry has grown around overselling...
Starting in 2011 widows and widowers can add to their own estate tax exemption the unused exemption of the spouse who died most recently. This provision, plus an increase in the exemption amount to $5 million per person, enables married couples together to transfer as...
Here is a quick summary of the new Estate Tax rates signed into law December 17, 2010 2010 Estate Tax Exclusion amount: $5,000,000 Maximum tax rate: 35% Carryover basis: Option to elect carryover basis instead of estate tax treatment Gift Tax Exclusion amount:...
Here is a detailed Explanation of the Estate and Gift Tax Changes: 2010 Estate Tax *Basic exclusion amount: $5,000,000 Formerly called applicable exclusion amount Unified credit: $1,730,800 *Maximum tax rate: 35% Level where 35% rate begins: $500,000 But no tax until...
The Democrats in the House are vowing to fight the Estate Tax exemption of $5m approved in the Senate. If no action is taken by December 31, the exemption will fall to $1m. Remember, this includes proceeds from Life Insurance policies, IRA’s, pension plans, homes and...
