Estate Tax Changes Make Reassessment of Estate Plans a Must

12:01 pm Uncategorized

The new $5 million estate tax exemption per individual and a portability provision that allows a married person to pass on any unused portion of that exemption to a surviving spouse upon their death means that couples who may have used bypass trusts or other means to leave assets to beneficiaries should contact their estate planning attorney to see if these new changes in the estate tax law means they can now simplify their estate planning.

Even though the $5 million estate tax exemption is only on the books right now for 2011 and 2012, many experts believe that it is here to stay.

And while the gift tax rate remains at 35 percent for 2010, 2011 and 2012, the gift tax exemption goes to $5 million in 2011 and 2012, from $1 million in 2010.  The gift tax exemption also enjoys the same portability provision as the estate tax, and in 2012 will be indexed for inflation.  In addition, the gift tax exemption will be reunified with the estate tax exemption beginning this year.  These gift tax changes create significant gifting opportunities for the next two years.

If you have questions about what all the changes in the estate and gift tax laws means for your estate plan, contact our California estate planning law firm.

Help is available to you by contacting your Southern California financial planning experts today.

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