Recent and potentially ongoing changes to federal estate tax law make it difficult to know whether you need to be concerned about estate tax.
Regardless, consideration of taxation should be an important aspect of estate planning in the event that you meet the income threshold for taxation by the time of your death or that the applicable laws have changed.
At my firm – the Law Office of Barbara J. Dibble – I work with clients to create estate plans that are tailored to meet their changing needs. Contact me, a Fullerton estate tax planning attorney, online or call 714-515-5126 to schedule your free initial consultation.
Orange County Inheritance Tax Attorney
Under the new estate tax law regime, the threshold for taxation is $5 million per person, $10 million for a married couple. The truth is that most people will not be affected.
Even though estate taxation has changed and may not apply to you, estate tax is only one aspect of estate planning. Classic trusts are not affected by the changes to estate tax and the reasons for creating trusts and using other basic estate planning tools such as wills and powers of attorney are still applicable.
Importantly, federal estate tax law is going to be modified again in 2013, so it is important to consult with me, a skilled and experienced estate planning attorney who can create an adaptable estate plan.
Special Consideration for 2010 Deaths
If your loved one died in 2010, you can elect to have the old or the new tax law applied when his or her estate enters probate. If you elect to apply the old tax law, the tradeoff for no estate tax is that you cannot get the stepped-up basis.
For most people, it makes sense to opt for application of the new estate tax law because they will not necessarily meet the threshold for taxation and the stepped-up basis allows for a large tax savings if you inherited property that has increased in value over the years.
California Asset Protection Law Firm
Not sure how to plan for estate tax? Call us at 714-515-5126 or contact me, an Orange County inheritance tax lawyer, online to schedule a free initial consultation with an experienced lawyer. I have regular office hours, with evening and weekend appointments available.