Skip to content


Estate Planning in Today’s Political Environment

Today’s political environment makes estate planning difficult for those people whose total assets are close the range of possible taxable estates.  Because of the charged political environment, we literally do not know what tax rates will be in January of 2013. Here, Paul Caron blogs about a poll of tax professors regarding their opinion of what tax rates will be just over a month from when I write this. Of interest to us:

8. The Estate & Gift Tax:
Will be eliminated: 1.7%
Will apply to estates over $1,000,000: 5.2%
Will apply to estates over $3,500,000: 47.4%
Will apply to estates over $5,120,000 [2012 law]: 47.4%
Will apply to estates over some amount greater than $5,120,000: 0%

The polled tax professors evenly split between $3.5 million and $5.125 millions – the latter current law – for where the estate tax would begin to bite next year. They don’t know and neither do we. So its important to review your estate planning more often in these chaotic political times.

Posted in Elder Law.