Careful life insurance planning has always been important. But come December 31, 2012, smart planning will be more important than ever! That’s because the current $5.12 million exemption from estate taxes expires on that date, and lawmakers have pegged the 2013 exemption at just $1 million and increased the tax rate from 35 to 55 percent! But don’t despair. With tax-smart … [Read more...]
Estates
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How to use estate tax rules to avoid income tax
Want to create a tax-shelter that eliminates capital gains, recapture taxes, and gives your heirs a nice tax break? All you have to do is die. Oh, I know you may not want to rush to take advantage of this extreme tax strategy but you should know that keeping your home until death has distinct advantages. At death, your estate avoids both capital gains and recapture taxes, … [Read more...]
Tax Tips for the estates of those who died in 2010
IMPORTANT: The tax law gives two choices to the executors of estates of decedents who died in 2010: Choice #1 is to apply the old 2010 rules Choice #2 is to apply the newly enacted 2011 and 2012 estate tax rules If you are the executor of an estate (of someone who died in 2010), which choice makes sense for you? You’ll find answers in our new article titled Tax Tips: Tax … [Read more...]
Dealing with the new estate and gift tax rules
The bad news: Nothing is certain except death and taxes. The good news: Thanks to the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 (better known as the Bush tax cut extension package) a new, temporary, federal estate and gift tax has been established for 2011 and 2012. Want to learn how to use the new estate tax rules to provide big … [Read more...]