Estate Tax Update

As my estate planning clients have been advised, estates valued higher than the Federal Gift and Estate Tax exemption amount will be subject to the Federal Estate Tax unless effective estate planning was in place prior to the death of the estate owner.  In 2009 the total Federal Gift and Estate Tax exemption amount was $3,500,000.00.  There was no estate tax in place for 2010.  But on December 18, 2010 President Obama signed a tax bill which set the exemption amount at $5,000,000.00 with a 35% tax rate through the 2012 tax year.  However, on January 1, 2013 the exemption and rate are scheduled to revert back to the numbers that were in effect in 2002.  Which, as mentioned to my estate planning clients, means a $1,000,000 exemption and 55% estate tax rate.  That’s right.  Those are the same numbers that almost fell into place for this year!  So stay tuned!

Call us today if you have any questions:  248-330-6372

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Milford Michigan attorney emphasizing estate planning 248-330-6372
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