• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Meet Our Team
    • News and Events
    • Seniors Rock Radio
  • Estate Planning
    • Elder Law & Medicaid Planning
    • Estate Planning Services
    • Estate and Gift Tax Figures
    • Family Farm Succession Planning
    • Family-Owned Businesses & Farms
    • IRA Planning
      • Planning With An IRA
      • IRA & Retirement Planning
    • Legacy Planning Services
    • LGBTQ Estate Planning
    • Pet Planning
    • SECURE Act
    • Special Needs Planning
    • Trust Administration & Probate
    • Young Families
  • Elder Law
    • Coping With Alzheimer’s
    • Elder Law Resources
      • Elder Law Reports
    • Guardianship & Conservatorship
    • Hospice Care
    • Veteran’s Benefits
  • Resources
    • Definitions
    • FREE Estate Planning Worksheet
    • FREE Webinars
    • Estate Administration Legal Guide
    • Estate Planning Articles
      • Questions for Your Estate Planning Attorney Before Creating Your First Estate Plan
      • How to Create Your First Estate Plan in 2022
      • How to Choose a Guardian for Your Child
      • Address These Three Questions in Your First Estate Plan
    • Estate and Gift Tax Figures
    • Frequently Asked Questions
      • Adult Guardianship
      • Alzheimer’s Care
      • Custodial Accounts for Minors
      • Estate Planning
      • FAQs for Families Without an Estate Plan
      • Elder Law
      • IRA & Retirement Planning
      • Is Your Estate Plan Outdated?
      • Legacy Planning
      • LGBTQ Estate Planning
      • Medicare and Social Security
      • Probate
      • Probate Avoidance
      • Irrevocable Trusts
      • Trust Administration
      • Trusts
      • Veterans’ Benefits
      • Wills
    • Newsletters
    • Reports
      • Advanced Estate Planning
      • Basic Estate Planning
      • Estate Planning for Niches
      • Trust Administration
    • Top Estate Planning Techniques
  • Reviews
    • Our Reviews
    • Review Us
  • Medicaid Planning
    • Medicaid Planning
    • Emergency Medicaid & Nursing Home Planning
    • Medicaid Frequently Asked Questions
    • Medicaid Resources
  • Blog
  • Contact Us

Law Office of Michael Robinson, P.C.

Estate Planning Services in Rochester, New York and the Finger Lakes Area

Connect With Us Today

(585) 374-5210
Law Pay Button
Attend a Free Webinar
Home » Estate Planning » Real Estate Boom Could Create Estate Tax Headaches

Real Estate Boom Could Create Estate Tax Headaches

August 3, 2021Estate Planning

Estate taxThere has been a huge real estate boom in this country for a number of years at this point. In some areas, housing prices have soared at accelerated rates, and this is exciting for homeowners and investors.

However, from an estate planning perspective, a significant increase in real estate values can create estate tax exposure.

Federal Estate and Gift Tax

The federal estate tax is poised to extract a sizable portion of your legacy if you have been very successful from a financial standpoint. It carries a 40 percent maximum rate, but a significant amount can be transferred tax-free.

This dollar figure is called the exclusion, and at the time of this writing in 2021, the federal estate tax exclusion is $11.7 million.

There are a couple of provisions for married couples, and one of them is the unlimited marital deduction. If you are married, you can leave any amount of property to your spouse free of the federal estate tax, but this deduction is only available to American citizens.

When the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 was enacted, the estate tax exclusion became portable. This means that a surviving spouse can use the exclusion that would have been available to their deceased spouse.

Can you give gifts to avoid the estate tax? The answer is yes and no. There is a gift tax in place, and it is unified with the estate tax, so the multimillion-dollar exclusion applies to lifetime gifts and your estate.

That’s the bad news, but the good news is that there is an additional annual exclusion. You can give as much is $15,000 to an unlimited number of people each year tax-free without using any of your unified gift and estate tax exclusion.

There is another exclusion that you can use to pay school tuition for students, and there is an exclusion that allows you to pay medical bills for others in a tax-free manner.

Your home and any other real property that you may have would be part of your estate for tax purposes, and there is an added consideration. The $11.7 million exclusion that we have this year is a record high, and it is coming down in the near future.

On January 1, 2026, the provision in the Tax Cuts and Jobs Act that increased the exclusion will sunset. At that time, it will revert to the $5.49 million figure that was in place in 2017, indexed for inflation.

New York State Estate Tax

The federal estate tax is not the only tax that can take a bite out of your legacy. Here in New York, we have a state-level estate tax to contend with as well, and the exclusion is $5.93 million this year.

Also, unlike the federal estate tax, the New York estate tax exclusion amount is not portable for married couples.

There are 11 other states that have state-level estate taxes, and the District of Columbia has its own estate tax. If you own valuable property in a state with an estate tax, even if you are a New York resident, the tax would be applicable if its value exceeds the exclusion.

Schedule a Consultation Today!

We understand the fact that taxation is not going to be a source of concern for most people, so we are here to help regardless of your financial situation.

There are different ways that you can get assets into the hands of your loved ones, and the optimal approach will depend on the circumstances. Personalized attention is key, and this is what you will receive when you choose our firm.

You can schedule a consultation at our Rochester, NY estate planning office if you call us at 585-374-5210, and you can use our contact form to send us a message.

 

 

  • Author
  • Recent Posts
Michael Robinson, Estate Planning Attorney
Michael Robinson, Estate Planning Attorney
Clients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors.
Michael Robinson, Estate Planning Attorney
Latest posts by Michael Robinson, Estate Planning Attorney (see all)
  • Business Succession Planning May Be Easier than You Think - June 1, 2022
  • Estate Planning – Something You Shouldn’t Do Yourself - May 18, 2022
  • Just When You Thought You Understood the 10-Year Rule, Think Again - May 11, 2022

Other Articles You May Find Useful

Estate Planning – Something You Shouldn’t Do Yourself
inheritance
Do You Have to Accept an Inheritance?
Application of the Updated Life Expectancy Tables
Start 2022 the Right Way
The Importance of Insuring Real Estate
Shrunken Asset Values Open Estate Planning Opportunities

Primary Sidebar

Law Office of Michael Robinson, P.C.

Blog Subscription

  • This field is for validation purposes and should be left unchanged.

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube

TESTIMONIALS

A pleasure as always dealing with the entire staff. Always willing to explain the answers to our questions.

- Joseph and Julie Ann M.

Over the years we have been to many programs regarding Estate Planning. We were most impressed with Mr. Robinson’s presentation - both in subject matter and explanation in an understandable manner. We have put our “trust” in his competent hands. We were not aware of the complexity and the volume of paperwork generated for this undertaking. We found his staff to be most capable and client oriented in their knowledge and delivery.

- F.T. & L.T.

Our overall experience was one of thoughtfulness, clarity and comprehensiveness on the part of Michael Robinson, his staff and associates. We attended Michael’s seminar on legacy wealth, and found him to be clear and well-spoken. He touched on all aspects of Estate Planning in which we were interested. Our first of two visits to his office was timely and helpful enough for us to consider developing a plan. We finalized our document at a necessary meeting. His staff was accommodating and virtually spelled out every aspect of the plan. We highly recommended Michael and his system for developing a trust.

- Sharon T.

“From the first visit I was welcomed (like family). The office & girls have all their ducks in order! Very friendly! Mr. Robinson explained everything in detail. 100% satisfied. Will pass the word on. Great Law Firm. Thank you so much.”

- Geraldine P.

Establishing a Family Wealth Trust through the Law Office has been a positive experience, the staff is congenial, patient, thorough, professional and knowledgeable. Thank you for all your kindness. We certainly are comfortable and confident with our decision.

Beverly L.

<
>

News & Events

Seniors Rock Radio Show Recording 5-1-21

https://drive.google.com/file/d/1U7UkQbEGy-xY7XFAXvX9Qz7pKSVDVV3D/view?usp=drive_web   Author Recent Posts Michael Robinson, Estate Planning AttorneyClients notice Michael Robinson’s unique approach to his estate planning practice the minute they walk through his office doors. Latest posts by Michael Robinson, Estate Planning Attorney (see all) Business Succession Planning May Be Easier than You Think - June 1,... Read more →

Pittsford Office

1163 Pittsford-Victor Road, Suite 120 (Powder Mill Office Park)
Pittsford, NY 14534-3817
Phone: (585) 374-5210
Fax: (585) 485-0394

See Larger Map Get Directions

Map

mrobinson_sidbr_map

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
robinson law logo

The Law Office of Michael Robinson, P.C.

Attorney Advertisement


© 2022 American Academy of Estate Planning Attorneys, Inc.