| Wealth
Ezine
CONGRESS IS ESTATE
DEBATING, BUT TIME IS NOT WAITING
Guess what? There currently
is not a Federal Estate Tax. No, Really!! Under the existing tax
provisions the Estate Tax was completely phased out on January 1,
2010.
But don’t celebrate
yet because on January 1, 2011 the Federal Estate Tax is scheduled
to “reappear” with a vengeance, allowing only a $1 Million
Estate Tax Exemption and a 55% Maximum Estate Tax rate.
The House has already
passed legislation that has an estate tax proposal which provides
for a $3.5 Million Estate Exemption and 45% Maximum Estate Tax rate
to be retroactive to January 1, 2010 (we assume similar provisions
would apply to effectively counter the pending catastrophe on January
1, 2011). The Senate is still developing its version of Estate Tax
legislation, in a “bipartisan” manner. If Congress doesn’t
act the 2011 Federal Estate Tax will be reinstated at the lower
exemption and higher maximum tax rate.
Two Facts are certain
– 1.) There will continue to be a Federal Estate Tax of some
magnitude, and 2.) Business Owners who have not yet conducted Estate
Planning in anticipation of the complete Phase-Out of the Federal
Estate Tax have only 6 months to develop and implement a cohesive
Estate Plan.
Consider that the Federal
Estate Tax can take fully one- half of your Wealth and your State
may have an Estate Tax in addition to Probate Taxes. Even worse,
the Federal Estate Tax return must be filed and the Estate Tax paid
within 9 months after demise, when many families are still in shock
and grief. That is not the time to begin marshalling resources and
making plans.
So let’s get started,
immediately, if not sooner! Draft your Will and Living Will. Begin
making a list of all assets – Cash, Bank and Investment Accounts,
Property, Business Values, Trade Secrets, whatever. Then let’s
get together to determine the possible scope of your estate and
get a picture of the potential tax implications. We will work closely
with your Estate Attorney to develop and implement Estate planning
and tax strategies. If you don’t have an Estate Attorney we
will refer you to the Estate Attorneys who work as integral members
of our In The
Zone team.
Six months and counting.
Have you started that Will and Asset Listing yet???
We look forward to continuing to provide you with the advice, guidance
and personal involvement that you have come to expect from being
In The
Zone.
Thanks for visiting and don't forget to glance at the Success
and Tax
E-Zines while you're here.

© Donald Carroll Moragne
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