The end of 2010 marks the end of the great no estate tax windfall. From "the boss" of the New York Yankees to one of Texas' richest energy barons, those "lucky" enough to die this year were able to protect their fortunes from Uncle Sam's "death tax."
The estate tax returns on January 1, 2011 with a vengeance. The $3.5 million exemption and 45% rate that was in place in 2009 will return to the 2001 levels of $1 million (indexed for inflation) and 55% when EGTRRA sunsets on the coming New Years Eve.
This is complicated, so what does it mean for you?
At year end, its always a good time to revisit your finances and planning, and 2010 offers further incentive. You may have never had to worry about paying an estate tax, but the lower levels will now affect a much high number of families than before, especially small business or land owners. Even if you do not have $1 million in assets, its time for a year end checklist:
Do you have a will?
If you do have a will, when was the last time you reviewed it?
Have your goals, finances, family structure, or business changed?
If you make charitable donations of any form, are you getting the appropriate tax deductions?
Do you have a medical power of attorney, in the event you were injured and could not make decisions for yourself?
If you support family members or others, have you taken advantage of advantageous taxable gifting regimes expiring at year end?
If you have elderly relatives or friends, are they receiving competent healthcare, and are they taking advantage of government benefits?
Many of these questions have simple, inexpensive answers that can lead to significant savings and headache prevention in the future. Its never to early to plan for tomorrow, and the end of the year is a great time to reflect, regroup, and reorganize.
Search This Blog
Popular Posts
-
I've written about beneficiary designations before , but they continue to be a source of conflict I'm seeing for clients. It's n...
-
Time flies. The usual scenario is parent 1 passed away, parent 2 passed away 5 years later, and now the kids are stuck with a mess. Today we...
-
Sorry I've been gone a while, but I've been busy. In today's post, I'll walk you through a (very rudimentary) tutorial on th...
-
Finally, at long last, we have some clarity on what and how the ATF will be regulating the use of "gun trusts" for purchase of Nat...
-
We sign things all the time. Mostly credit card receipts, but if you have ever bought a car, a home, or signed for a package, you are also r...
-
If you've tried to find me, I've moved. Come see me at 717 N. Crockett St., Sherman, TX 75092. New phone is 903.964.0852. Same guy, ...
-
I get this question much more regularly now than 5 years ago. Thanks to the internet, we now have access to more information, and if you bel...
-
I don't love continuing legal education classes. Here's why: 1. I don't like many things that are mandatory, and they are. 2. I...
-
I really don't like efiling. I do not think I am alone. I laud the clerks and technicians who have spend countless hours getting traine...
-
I have written about life insurance before . In general, I'm not crazy about it, but for some folks it makes sense. I go to a lot of lu...
Post a Comment