Senate bill S2899 has been introduced by Senator Bernie Sanders (I-Vt.) that would establish the federal estate tax rate to be 40% on all estates worth $3,500,000 but less than $10,000,000, and 50% on all estates in excess of $10,000,000 but less than $50,000,000. Thereafter the estate tax rate would be 55% on estates in
Bequeathing a large amount of money to multiple generations of your family has long been a controversial issue; but this approach to wills and trusts is suddenly getting more popular. The 2010 Tax Relief Act made it possible to fund $5 million-plus trusts per person without incurring as big a tax bill as in the
It is not enough simply to just sign a bunch of papers establishing an estate plan and other end-of-life instructions. You also have to make your heirs aware of your estate plan and leave the documents where they can be found. Also consider, at least 10 states have been investigating whether some of the country’s
The general rule governing the proceeds of any life insurance contract insuring the life of an individual is that the proceeds are not taxable, so long as the proceeds are payable to one or more named beneficiaries and not the estate. Some other principals regarding life insurance are: The proceeds are also non-taxable if paid
Many federal and state laws changed this year that affect estate and gift taxation. It is wise to review your estate plan before the end of the year to take advantage of the changes. As the temperatures drop, thoughts turn to end-of-year considerations such as taxes, charitable contributions and estate planning. While many are used
While many people are postponing updating their estate planning documents until there is a little more certainty about the next estate tax law effective January 1st, 2013, a person should still continue to update his or her existing estate planning documents. Also, waiting for the Congress to determine how it wants to set the estate
Time may be running out for one of the biggest tax breaks for Americans: the chance to gift up to $5.12 million to heirs tax-free and then pay “only” 35 percent gift tax on a gift above that. The break is scheduled to expire on December 31, 2012. The original $5 million limit was increased
If you are still unsure as to whether a trust is for you, there’s one simple question to answer: Is your net worth $100,000 or more? If it is, now is the time to talk to your estate planning attorney. There are a few other things to consider, of course, and there are many, many
In 2010, taxpayers and their advisers were presented with a real gift from Congress – an increase of the estate tax exclusion to $5 million and a corresponding increase to the lifetime gift exclusion from $1 million to $5 million. This window of opportunity came with a short shelf life, with both provisions set to
When was the last time your reviewed the beneficiary designation form from your retirement plan, IRA, life insurance policies or annuities? If your answer is typical, you don’t remember. A recent U.S. Supreme Court decision should motivate some people to move this overlooked step higher on their priority list. This particular ruling involved a 401(k)