There are those who consider estate planning to be a “one and done” endeavor. You sit down with a good central New Jersey estate planning lawyer, work up the appropriate documents, and then tuck them away in a lock box somewhere and forget about them.
In reality estate planning is better viewed as an ongoing process just like financial planning in general. When you are managing your finances on an ongoing basis you are aware of the fact that you may have to take action at times as a response to current market conditions. The same thing is true with your estate plan in a somewhat different manner.
With the above in mind 2012 is a year during which action could be beneficial. For the rest of this year the unified estate/gift tax exclusion is $5.12 million. So let’s say your estate is valued at $5 million. You could potentially give gifts totaling $2 million this year tax-free and still have $3.12 million remaining to apply to your estate.
This hypothetical scenario can only play itself out until the end of this year. At that time the tax relief act that was passed in 2010 expires and the exclusion goes down to $1 million while the rate of the tax rises from 35% to 55%.
As a result, a unique opportunity exists for the next several months. If you would like to find out whether or not taking action would be beneficial for you, pick up the phone right now to arrange for an informative consultation with a good central New Jersey estate planning lawyer.
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