Year-End Tax Increases Getting Closer
May 24, 2012 By Frank & Kraft, Attorneys at Law
Now that we are getting well into the year it is important to recognize the fact that there are some significant changes to the tax laws scheduled to kick in at the end of 2012. These alterations may make it necessary for you to make changes to your estate plan and perhaps your long-term financial plan as well.
This new playing field is coming about due to the expiration of the tax relief act that was passed at the end of 2010. This measure extended the Bush era tax cuts and provided for a $5 million estate tax exclusion coupled with a 35% maximum rate.
When the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 sunsets the top rate of the estate tax goes up to 55% and exclusion goes down to $1 million. In addition to this, the long-term capital gains rate and the tax on dividends will increase as well.
Given the realities touched upon above you are going to want to sit down and discuss your situation with a good Indianapolis estate planning lawyer before these changes take effect. Your attorney will evaluate the nature of your assets, gain an understanding of your long-term financial objectives, and guide you along a path that provides minimal tax exposure and optimal asset protection.
There are potentially huge sums of money in the balance, but there are ways to mitigate your exposure if you are proactive about implementing tax efficiency strategies with the assistance of an expert.
ABOUT THE AUTHOR: Paul Kraft
Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers estate planning and business planning resources to residents of Indianapolis IN.
Copyright Frank & Kraft, Attorneys at Law
More information about Frank & Kraft, Attorneys at Law
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
When the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 sunsets the top rate of the estate tax goes up to 55% and exclusion goes down to $1 million. In addition to this, the long-term capital gains rate and the tax on dividends will increase as well.
Given the realities touched upon above you are going to want to sit down and discuss your situation with a good Indianapolis estate planning lawyer before these changes take effect. Your attorney will evaluate the nature of your assets, gain an understanding of your long-term financial objectives, and guide you along a path that provides minimal tax exposure and optimal asset protection.
There are potentially huge sums of money in the balance, but there are ways to mitigate your exposure if you are proactive about implementing tax efficiency strategies with the assistance of an expert.
ABOUT THE AUTHOR: Paul Kraft
Experienced estate planning attorneys Indianapolis IN of the Frank & Kraft Attorneys at Law offers estate planning and business planning resources to residents of Indianapolis IN.
Copyright Frank & Kraft, Attorneys at Law
More information about Frank & Kraft, Attorneys at Law
View all articles published by Frank & Kraft, Attorneys at Law
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
