The concept of estate tax portability is an essential idea when it comes to estate planning and estate tax preparation. A lot of people go into the estate planning process believing that the estate tax is a significant potential problem. After all, you have worked hard for your money, and you do not want to have to pay taxes on any inheritances you might give after you die.However, the estate tax issue has become much less significant in recent years because of some key developments in the … [Read more...]
Gandolfini’s Will Details Revealed
James Gandolfini, the actor renowned for his role as Tony Soprano in the HBO television program “The Sopranos,” died at the age of 51 in June after suffering a heart attack in Italy. He left behind an estate estimated to be worth about $70 million, as well as a last will and testament that was recently submitted to a Manhattan Surrogate’s Court.The details of the will show that while Mr. Gandolfini did take some appropriate estate planning steps, he didn’t do as much as he should have. In … [Read more...]
4 Questions About the GST
Question 1: What is the GST?GST stands for generation-skipping tax, or sometimes as it is referred to, the generation-skipping transfer tax. It is a federally imposed tax that applies when people transfer wealth from one generation to another that is at least two generations removed. Essentially, this means it applies when grandparents give gifts to their grandchildren or great-grandchildren.Question 2: How does it work?The GST is similar to both the estate tax and the gift tax. When the … [Read more...]
Last Minute Planning Expected To Increase Before 2012 Ends
Estate planning attorneys have been preparing for the end of 2012 for quite some time. No, it has nothing to do with what some people claim will be the end of the world according to the Mayan calendar, but rather the expiring of the $5.12 million gift tax exemption that ends on December 31, 2012.As the law stands right now, individuals are allowed to give up to $5.12 million in estate gifts without those gifts being subjected to additional taxes. Come January 1, the $5.12 million exemption … [Read more...]
3 Estate Planning Steps to Take in 2012
The new year is our annual reminder to do the things we should have done in the previous year, as well as get ahead and make plans for the future. If you haven't already done so, you should review your estate plan and set up a meeting with your estate planning attorney if you see any changes that need to be made. Step 1: Update your documents. If this past year had you go through family or financial changes, you'll want to address these in your estate planning documents. If, for … [Read more...]
Medicaid Eligibility and Federal Tax Programs
Did you know that you may qualify for no-cost tax assistance through the Internal Revenue Service's Volunteer Income Tax Assistance programs? Known as VITA, the federal Volunteer Income Tax Assistance program allows you to visit a local tax assistance center to receive free tax assistance. IRS tax volunteers receive certified tax assistance training to help you file your annual federal income taxes. Offered during certain times of the tax season, you may be able to visit a VITA tax clinic and … [Read more...]
Do I Need to Worry About Gift Taxes?
Many people learn of the $13,000 annual gift tax exclusion and worry about gift taxes. In most cases, and unless you’re extremely wealthy, this worry is unnecessary. We’ll explain why below. You are Not Limited to Gifting $13,000 Per YearThe $13,000 annual gift tax exclusion is just one way to pass assets without paying gift taxes. In fact, this exclusion allows you to give away an unlimited amount of assets, so long as you spread the wealth and don’t give more than $13,000 to any one … [Read more...]
Unified Gift/Estate Tax & Your Estate Plan
When you are planning your estate, one of the first things to take into consideration is your exposure to the estate tax. Many people who are just beginning to delve into the subject are taken aback when they hear the details. Right now, the top rate of the estate tax is 35%. If that sounds like a lot, consider the fact that it was 45% in 2009, before the one-year repeal in 2010.And, if no new legislation is passed in the meantime, the maximum rate of the estate tax is scheduled to go up to … [Read more...]
New York’s Estate Tax
While the Federal estate tax has been in the news lately, many do not realize that New York State has an estate tax as well, as do several other states in the country. If you are a New York resident and your estate is valued at $1,000,000 or more, then your estate plan may need to address this tax burden. In addition, residents of other states who own real estate and/or tangible personal property located in New York, may also be subject to New York estate taxes.There are a number of estate … [Read more...]
Five Estate Planning Tools to Minimize Estate Taxes
One of the goals of estate planning is to minimize the burden of your passing on your loved ones. For some families, one burden that needs to be addressed is estate taxes. While the 2011 Federal tax exemption was recently set at $5,000,000, this amount is set to expire at the end of 2012, when the exemption is lowered to $1,000,000 for 2013.While this may sound generous, considering the contents of an estate including your home, investments, retirement accounts and more, there is still a … [Read more...]
