As the daily news reports make quite clear, we live in a very dynamic political environment. We are currently experiencing a very contentious presidential campaign season. The outcome of both the congressional and presidential elections will certainly affect us all in a myriad of different ways. Unless the current laws are extended or modified, there will be significant changes to both the gift taxes and estate taxes.
Currently the exemption for both of these taxes is $5,120,000. However, as of January 1st 2013 that exemption drops to $1,000,000 – this means that ALL of your assets have to be worth less than $1,000,000 to avoid those taxes (this includes all property, retirement plans, insurance…etc). Of course we do not know what Congress will do between now and then – at this point, they may not even know themselves. Regardless of what that decision may be, there has never been a better time to pass on wealth to your family. If you were considering making a gift, this is the year to do it! Through proper and timely planning you can maximize what you pass on to future generations and minimize the loss of your estate to taxes.
You have worked hard throughout your life to provide a good life for your children and grandchildren, making it devastating to lose a large portion of your assets to Uncle Sam.
The answer: get a good plan, make if flexible and ensure your estate plan and financial plan work together.
Contributed by MH Glendale Estate Planning Attorney West Hunsaker
About Morris Hall:
At Morris Hall, we have focused our legal practice on estate planning for over 40 years. Along with estate planning, our attorneys help clients and their families with matters of probate, trust administration, wills, power of attorneys, business planning, succession planning, legacy planning, charitable gifting and other important legal aspects. We also have divisions in financial, real estate and accounting to help you incorporate all of your planning together, ensuring that everything works perfectly for your needs and situation. Our Arizona offices are located in Phoenix, Mesa, Scottsdale, Tucson, Prescott, Flagstaff and Arrowhead. Our New Mexico offices are located in Albuquerque, Las Cruces and Santa Fe. Contact us today at 888.222.1328 to schedule an appointment!
This blog should be used for informational purposes only. It does not create an attorney-client relationship with any reader and should not be construed as legal advice. If you need legal advice, please contact an attorney in your community who can assess the specifics of your situation.