After changes to tax law, estate planning face more certainty

In a recent post, we mentioned that the recent American Taxpayer Relief Act of 2012 gave the estate planning community a long-awaited dose of permanence regarding tax policy.

Permanence refers mainly to the $5 million estate tax exclusion amount and the passage of permanent portability, which allows surviving spouses to use any portion of their deceased spouse's unused estate tax exclusion. The Taxpayer Relief Act made these thins permanent, and also included a provision that allows the exclusion amount to be adjusted for inflation annually.

While one could assume that the high exclusion amount will mean that fewer people will be needing estate planning services, it may actually be the case that more estate planning will be needed, since people's wealth is not being decreased by estate taxes, and there is now more money to be protected.

The use of trusts in estate planning will continue to be an important strategy to protect against creditors and against divorce situations, as well as for wealth transfer. In addition, life insurance will continue to be a useful tool, and it will be important for taxpayers to understand their charitable giving options, particularly as they relate to IRAs.

But permanence in relation to tax policy is exactly as solid as a rock, and changes may still be in store in the future. Because of this, estate planners will still need to think about building in contingencies when they develop plans for their clients. This built-in flexibility is critical for a plan to be able to serve a client in the best possible way while accounting for possible changes.

Source: Life Health Pro, "Estate planning in a post-fiscal cliff world," David Port, March 26, 2013

No Comments

Leave a comment
Comment Information

Mr. Teiger, Thank you very much for your time and results. I will definitely recommend you & your firm to anyone who wants to be treated professionally courteously and needs results.Hope all is well.Again...thank you. Regards, Paul L.

msg iconEmail Us For a Response

When you have legal questions or concerns, contact our team at Teiger Law Center, P.C., by calling 678-374-7645, 800-780-2275 or reach us via email by completing our online contact form. From our Cumming and Alpharetta law offices, we represent clients in the Atlanta metro and throughout north Georgia.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Cumming Office
514 West Maple Street
Suite 101
Cumming, GA 30040

Toll Free: 866-726-2153
Phone: 678-374-7645
Fax: 770-406-8858
Cumming Law Office Map

Alpharetta Office
12600 Deerfield Parkway, Suite 100
Alpharetta, GA 30004

Toll Free: 800-780-2275
Phone: 678-374-7645
Fax: 770-406-8858
Map & Directions