THE NEW TAX LAW HAS ARRIVED
Tax Attorney and CPA, Timothy P. Crawford, has researched the new tax law and wants you to know the following information:
Death Tax Exemption Changes
The $5,000,000 death tax exemption (the amount you can pass to your children tax-free) is not going back down to $1,000,000 as scheduled. Instead it is going to adjusted for inflation. Thus, the new amount adjusted for inflation is $5,250,000. This means that less than 1% of Americans will be paying death taxes. If they are required to pay death taxes, the rate will not be 55%, as originally scheduled for 2013, but will be only 40% of the excess over the death tax exemption amount.
What Do I Need To Do Now?
This means that you need to do a thorough review of your existing estate plan with your attorney. Yes – we realize that this is something that you are supposed to do annually, but it is very important that you take action now to review your Will and Trust.
Why Do I Need To Do This?
The main reason would be to make sure that your Trust Package is set up to minimize your cost of administrating your Trust after your death. Some simple changes NOW could result in over a $10,000 savings. You need to take action before you die to achieve these savings. ACT NOW!
As always, you should be conducting an annual review of your Trust for other reasons. These include making sure that the correct loved ones are getting your money at the time of your death. You also need to be sure that your funds are being administered inside of your Trust so that there are not outright distributions going to young children or grandchildren. You need to make sure that the correct people are making decisions for you during your lifetime and after your death.
If you would like more information on this, please call Attorney Timothy P. Crawford's office at 262-634-6659.
