During the midterm election year of 2010 the Bush era tax cuts were scheduled to expire. This became an issue that was hotly debated on the campaign trail, and immediately after the elections a new tax relief bill was indeed passed. It has subsequently been named the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.Now we are in another election-year and there is a sense of déjà vu in the air. The aforementioned tax relief act is going to expire at the end of … [Read more...]
Can You Use Your Late Spouse’s Estate Tax Exclusion?
To be optimally prepared for the future you must inventory your assets to gain an understanding of the value of your total resources and how this value compares to the estate tax exclusion. If you are in taxable territory you are going to have to take steps in advance to gain tax efficiency in an effort to preserve your wealth.Right now the estate tax exclusion is $5.12 million per person. So, if you are married you and your spouse could combined your respective exemptions and have a total … [Read more...]
The Estate Tax and Dick Clark
People around the globe are mourning the loss of the entertainment giant Dick Clark. The irrepressible impresario made his mark years ago as the host of the American Bandstand television show, and he presided over the evolution of popular music as we know it.Dick Clark passed away a wealthy man with a fortune estimated to be valued in the hundreds of millions of dollars. Since Clark is generally perceived in a very positive light you may find it possible to empathize with the situation that … [Read more...]
Inheritance and Estate Taxes: NJ Gets Them Both
Being aware of the tax burden that your heirs may face after you pass away is very important when you are making preparations for the inevitable. Some states impose more of a burden than others, and here in New Jersey we are in rarefied company. Only the Garden State and the state of Maryland have both an estate and an inheritance tax at the state level.Before you even get started evaluating your New Jersey tax responsibility you have to be aware of the federal estate tax that is imposed … [Read more...]
Unknowns Abound Regarding Future Of The Estate Tax
There are large numbers of people in the United States who may be subject to the estate tax in 2013 unless they take action to mitigate their exposure. Under current laws the estate tax rate is going to go up from the 35% that is in place right now to 55%, and the exclusion is going to be reduced from $5.12 million to just $1 million.The problem with taking action in light of these changes is that they may or may not actually take place. Yes, if things remain as they are right now and there … [Read more...]
Beware Of Estate Tax Misconceptions
There was once a time when $1 million was an amount of money that made you truly wealthy. However, at this point in time this figure does not hold the same magical quality that it once did.The fact is that you could easily have a net worth exceeding $1 million without considering yourself to be extraordinarily wealthy and if you do have over $1 million in financial resources you have to concern yourself with the federal estate tax.As of this writing the unified estate/gift tax exclusion is … [Read more...]
