portability Tag

Alert: New Estate Tax Laws and How Portability May Impact Your Beneficiaries

If you have estate planning documents that are more than a year old, you probably need to have them reviewed by an estate planning attorney. Why? Because 2 big changes (among others) were made to the estate tax laws. Here’s the scoop… Congress set the estate tax exemption amount “permanently” at 5 million indexed for inflation. The 2014 exemption amount is $5,340,000. This means with good foundational estate planning a married couple can shelter $10,680,000 from federal estate taxes. Most people are well below this 10 million dollar figure but that doesn’t mean there is no...

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Creative Estate Planning for Clients No Longer Subject to the Federal Estate Tax

When Congress passed the American Taxpayer Relief Act (ATRA), roughly 99.8 percent of U.S. taxpayers became shielded from the federal estate tax (aka the "death tax"). So what does this mean for estate planning? Post-ATRA estate planning appears dramatically different than in years past. For the first time in U.S. history there is a “permanent”, inflation-adjusted and portable exemption amount that essentially excludes the extremely wealthy, from gift, estate and generation-skipping transfer (GST) tax. This is extremely important since, for the past decade, there was a great deal of uncertainty in estate planning. Prior to ATRA, there had been a phased-in...

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