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.
In our last post, we informed our readers about the new gift and estate tax rules that came out of the recent fiscal cliff deal. As we noted, the potential change has been a huge issue in the estate planning world for some time, attorneys not knowing what the future would hold and clients not sure what to do with their wealth. The bottom line is that the system that has been in place over the last two years was extended indefinitely.
We want to update our readers on how the fiscal cliff deal will affect gift and estate tax planning in the coming year. This has, as our regular readers know, been a big issue in the estate planning world, and had many people taking last minute precautions over the last several months, so let's take a look at what happened.
In our last post, we began speaking on how trusts and LLCs can be used for real estate in planning one's estate. The topic is important, as failing to protect one's real estate from lawsuits and probate after one's death can create extra troubles and costs. These can be avoided by prudent use of a trust or LLC.
Asset protection, like Medicaid planning, is an important aspect of estate planning. In truth, Medicaid planning is a form of asset protection, which includes a number of other considerations like tax minimization, planning for special needs children, and ensuring avoidance of costly will contests.
In our previous post, we began looking at five common ways people's estate plans mistakenly leave money to the IRS. The combination of income, estate, capital gains, and gift taxes can take a substantial sum out of an estate. With some proper planning, though, these mistakes can be avoided.
A recent article out of Vending Times took up the important topic of how to avoid passing your wealth on to the IRS. This is a particularly important issue for those who are wealthy, as they have a greater risk of losing their wealth to various forms of taxation. The topic is worth considering even for less wealthy readers who want to maximize their tax savings.
In our previous post, we began looking at a list of estate planning issues which were suggested as important for women to understand. We present them as important for anybody to understand.
In a recent post entitled "Women and estate planning," we looked at an article written by Deborah Jacobs of Forbes online. The article was about the need for women to become more involved in the estate planning process, not help in the work of planning for the family's future, but also for their own sake. The fact is that women are more likely to see the effects of poor planning than men. And even when the planning is thorough, it isn't always in women's favor.
A recent Wall Street Journal article which goes into the uncertain state of estate taxation among the states highlights that estate planning can often be one of the more challenging aspects of estate planning.