Cash Flow Planning for Life - Helping you reach your personal & professional financial goals.

Cash Flow Planning for Life

Helping you reach your personal & professional financial goals.

3: Estate Tax, Gift Tax, and GST Tax

Posted by Mark On February 18th

Estate Tax

This is the third installment of Tax Planning for Changing Times: 5 Things You Should Know which can also be downloaded as a free eBook.

The 2010 Tax Relief Act reinstated the estate tax, gift tax, and GST (Generation-Skipping Transfer) tax at a 35% tax rate and $5.12 million (for 2012) exemption. In addition to the increase in the exemption amount…

the Act also created a portability election for decedents dying after 2010. This election is made by filing a Form 706, even if estate is under the $5.12 million exemption amount. If the election is made the surviving spouse’s exemption amount will increased by deceased unused exemption.

Uncertainty Going Into 2013

Tax Planning for Changing TimesIf Congress does not act on this issue before December 31, 2012, the law will revert back to 2001 levels on January 1, 2013. These laws were a $1 million estate and gift tax exemption and a 55% tax rate. This area of tax planning is very complex. Therefore, you should consult an estate tax expert before making any decisions.

Read more about tax planning in these changing times by downloading our FREE eBook, (right). Need assistance with your tax planning, contact me at Makara & Associates, LLC. To reach our Naples office call (239) 384-9688 or our Fort Myers office (239) 768-5008. Follow us on LinkedIn and Twitter, and LIKE us on Facebook.

– Mark

This information is based on facts, assumptions and representations as stated and authorities that are subject to change. We will not update this information for subsequent legislative or administrative changes of future judicial interpretations.
LEGAL NOTICE AND DISCLAIMER: The information within this blog is for informational and educational purposes only and is not tax advice and should not be used as such. The facts of each individual situation can have significantly different outcomes when applying tax law. The hiring of a CPA is an important decision not to be based solely on advertisements.


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