Changes to Tax and Estate Tax Laws Can Affect Your Estate Planning.
2013 has brought changes to many taxes that can have an effect on your estate planning. Some of the taxes that changed include: gift taxes, federal estate taxes, state estate taxes, state inheritance taxes, generation skipping taxes and income taxes. The federal estate tax limit has changed from $5,120,000 in 2012, to $5,250,000 in 2013. This means that an estate that’s gross value is $5,250,000 or under may pass on to heirs free from the federal estate tax.
The American Tax Payer Relief (ATRA), which went into action at the beginning of this year, has made the portability of the estate tax exemption permanent. This means that spouses can pass their $5,250,000 exemption on to the living spouse upon their death. The living spouse may now have an exemption of $10,500,000. However, if the estate is valued at more than the exemption the person or couple has, IRS Form 706 must be filed within nine months of death.
With all these changes to the tax and estate tax laws, it can be helpful to see a professional to set up a will or living trust. Our packages here at The Evans Law Firm include legal counseling, last will and testament, durable power of attorney, advanced healthcare directive and HIPPA authorizations and nominations of conservator. Our rates for the New Year are:
o Individual $1,500
o Couple $2,500
•· Living Trusts
o Individual $2,500
o Couple $3,500