Navigation Links
Pozzuolo Rodden, PC, Philadelphia Estate Planning Attorneys, Are Pleased to Announce the Release of the Article "Hot Topics in Estate Planning- 2013"
Date:7/20/2013

(PRWEB) July 20, 2013

The Law Firm of Pozzuolo Rodden, P.C., Philadelphia Estate Planning Attorneys, announces the release of the article “Hot Topics in Estate Planning- 2013“. If you would like to read more, please read the full estate planning article and other corporate law or estate planning articles and newsletters at: http://www.pozzuolo.com.

Hot Topics in Estate Planning- 2013

I. The American Taxpayer Relief Act of 2012 and the “end” of the Bush era tax cuts.

     On January 1, 2013, the Bush era tax cuts expired. The Bush era tax cuts were various tax code changes that had been enacted during the George Bush’s presidency. Originally scheduled to expire at the end of 2010, the tax cuts were extended for two more years until the end of 2012. The expiration of the tax cuts, among other things, was supposed to cause the US to go over the “fiscal cliff”. However, on January 2, 2013, President Obama signed the American Taxpayer Relief Act of 2012, which reinstated many of the tax cuts, effective retroactively to January 1st.

     The enactment of the American Taxpayer Relief Act of 2012 affected various tax provisions related to income taxes, transfer taxes, IRAs, and pensions. When reviewing the Act’s effect on gift and estate taxes, one sees that there was not dramatic change from the immediately prior year. However, there is good news in that the passage of the Act prevented severe tax rates from being implemented.

     A. Estate Tax. The American Taxpayer Relief Act set the maximum federal estate tax rate at 40%. The Act also includes a $5 million dollar estate tax exclusion which is adjusted for inflation. Immediately before the Act, the maximum estate tax rate was set at 35% with a $5 million inflation adjusted exclusion. Had the Act not been passed, the top estate tax rate would have been 55% with an exclusion amount of only $1 million, indexed for inflation. The practical effects of the Act are significant. If the Act had not been passed, a person dying with a $2 million taxable estate could potentially have to pay over a $1 million in estate taxes on the estate.

     The American Taxpayer Relief Act also provides for “portability” between spouses. In other words, the estate of the first to die spouse may make a portability election to permit the surviving spouse to use the first to die spouse’s unused estate tax exclusion amount on the surviving spouse’s estate. The practical effect of this is to increase the surviving spouse’s estate’s exclusion amount to potentially $10 million. Without enactment of the Act, portability would not be available. This could be problematic for those couples near the threshold of the estate tax exclusion in that while individually, neither of their estates was large enough to trigger taxes, but when coupled together, the value of the estate would cross the tax threshold. Thus, when the first spouse dies and leaves everything to the other spouse, the other spouse’s estate would potentially have to pay taxes on the accumulated estate.

     B. Gift Tax. Similar to its effect on the estate tax, the American Taxpayer Relief Act set the maximum federal gift tax rate at 40%. The Act also includes a $5 million dollar lifetime gift tax exclusion which is adjusted for inflation. Thus, a person still may gift up to $5 million (or more) tax free during his lifetime.

     C. Generation Skipping Transfer Tax. The American Taxpayer Relief Act set the maximum federal generation skipping transfer tax rate at 40%. The Act also includes a $5 million dollar lifetime generation skipping transfer tax exclusion which is adjusted for inflation. The generation skipping transfer tax usually applies when a person makes a gift to a grandchild (or to someone 37.5 years younger than the gift-giver). Thus, a person still may gift, either during life or at death, up to $5 million (or more) tax free to his grandchildren (or to anyone 37.5 years younger than he is).

     Overall, the American Taxpayer Relief Act essentially preserved the recent status quo. Although the top estate and gift tax rate increased, the increase was not as great as it could have been. Furthermore, the estate and gift tax exclusion remains at a generous $5 million. Most individuals may rest easy knowing they will be able to pass their wealth onto younger generations tax free.

Please read the full article "Hot Topics in Estate Planning-2013" and other corporate law or estate planning articles and newsletters at http://www.pozzuolo.com

Pozzuolo Rodden, P.C, Philadelphia Estate Planning Attorneys, provides specialized cost-effective legal services to privately held business owners and high-net-worth clients in the Philadelphia Metropolitan and South Jersey areas in excess of 35 years.

Practice Areas:

Business planning and transaction, complex business litigation, commercial real estate and development, construction law and litigation, advanced estate planning and administration, tax and pension law, high profile and intricate family litigation, and employment law and litigation.

Pozzuolo Rodden, P.C.
Counselors at Law
2033 Walnut Street
Philadelphia, PA 19103
215-977-8200
http://www.pozzuolo.com

Read the full story at http://www.prweb.com/releases/2013/7/prweb10942909.htm.


'/>"/>
Source: PRWeb
Copyright©2012 Vocus, Inc.
All rights reserved

Related medicine news :

1. Joseph Pozzuolo and Jeff Pozzuolo, Estate Planning Attys. Will Conduct a Penn State CLE/CPE: The Basics Of Estate Tax Planning After The 2012 American Taxpayer Relief Act
2. Joseph R. Pozzuolo, Esq of Pozzuolo Rodden, Phila Business Attys. will Conduct a CLE/CPE Live/Webcast Commercial Loan Document Seminar for LawLine on May 15, 2013 in NY
3. Pozzuolo Rodden, P.C., Philadelphia Business Attorneys, Announce the Release of the Article: " Can I Sell The Stock Of My Small Business And Pay Zero Federal Taxes?"
4. Pozzuolo Rodden PC, Philadelphia Estate Planning Attorneys, Announce the Release of the Article "How To Use A Trust To Protect Your Children's Inheritance From Divorce"
5. Pozzuolo Rodden, P.C., Philadelphia Business Planning Attorneys, Announce the Release of "IRS Reaffirms Its Commitment To Expand The Audits Of High Net Worth Individuals"
6. The Children’s Hospital of Philadelphia’s 17th Annual Fetal Surgery Family Reunion Gathers Families from Across the U.S.
7. Actors, Models and Talent for Christ Announces Philadelphia Auditions for Up and Coming Talent of All Ages on Saturday, June 22th
8. The Children's Hospital of Philadelphia Earns No. 1 Ranking on U.S. News & World Report’s Best Children’s Hospital List
9. The Children’s Hospital of Philadelphia Celebrates the Birth of Its 1,000th Fetal Surgery Patient
10. Two Community-Involved, Philadelphia-area Students Receive $8,000 Scholarships
11. Editions TV Presents June Air Dates for Philadelphia, PA
Post Your Comments:
*Name:
*Comment:
*Email:
(Date:3/24/2017)... Calif. (PRWEB) , ... March 24, 2017 , ... ... raised over $100,000 for its innovative EcoQube Frame vertical micro-veggies garden on ... instant demand for the product – with nearly 2,000 consumers (and counting) already ...
(Date:3/24/2017)... ... 2017 , ... Viewers who like to educate themselves on current issues and ... services, and societal issues tend to appreciate and love the "Informed" series, hosted by ... running events for causes around the world. , Running for charity has ...
(Date:3/24/2017)... ... , ... “End Time GPS”: a dauntless and enlightened study of the ... is the creation of published author, Wesley Gerboth, a World War II veteran, with ... projects. Now, at age ninety-one, he shares the Wisdom God bestowed upon him in ...
(Date:3/23/2017)... , ... March 23, 2017 , ... A recent report ... entry into teacher preparation programs. The NCTQ report suggests, based on a review of ... would significantly improve teacher quality in the U.S. It argues that this higher bar ...
(Date:3/23/2017)... (PRWEB) , ... March 23, 2017 , ... The IoT ... and WiFi connectivity are making a huge impact on businesses and individual consumers alike. ... estimates the IoT will have a value anywhere from $4 trillion to $11 trillion ...
Breaking Medicine News(10 mins):
(Date:3/23/2017)... -- Mosaic Life Care, based in St. Joseph, Missouri , has ... of 58 clinics, located in 22 cities, and its flagship St. Joseph Medical Center. ... the delivery of health care to its patients, including the insurance, billing and collections ... ... Mosaic Life Care St. Joseph Medical Center ...
(Date:3/23/2017)... , Mar. 23, 2017 Research and ... Devices Market: Analysis By Procedure, Replacement Procedure By Technique, Repair Procedure ... offering. ... Heart Valve Devices Market is forecasted to grow at a CAGR ... valve devices is driven by rising aging population, growth in population ...
(Date:3/23/2017)... 23, 2017 Executive ... through extensive primary research (inputs from industry experts, ... to present the analysis of global heart valve ... and Repair); Replacement Procedure By Technique (Mechanical, Bioprosthetic, ... (Surgical Devices, Balloon Valvuloplasty, Transcatheter Mitral Valve Repair ...
Breaking Medicine Technology: