Tax planning is one of the more tricky aspects of aspects of estate planning. Not only is there the need to navigate various tax systems, there is also the ever-changing law in this area.
In our last post, we noted that the IRS is currently in an effort to audit land-transfer records from at least 15 states for evidence of omissions of gift reporting. Failure to report gifts of real estate for gift tax purposes is, apparently, a common problem in a number of states.
Sometimes navigating through estate taxation issues can be confusing, even where the estate at issue is relatively straightforward.
When a New Jersey resident dies leaving property, there are several types of death taxes that will have to be deal with, depending on the specific situation.
In our last post, we began looking at an article with suggestions for married couples about how they can avoid estate taxation, particularly in the event of death in the next couple years. Here we continue that discussion.
In our previous post, we began discussing the changes in the gift and estate tax system for 2011 and 2012. Here we continue that discussion.
The Wall Street Journal recently published an article discussing the recent changes in the federal gift and estate tax system. As the article points out, the changes have led to the most generous estate and gift tax rates since 1931.
The federal government recently released new federal state tax exemptions for 2011 and 2012 that benefit the wealthy more than some state legislatures anticipated, with exemptions available up to $5 million per estate and $10 million per couple. Though these high numbers currently leave many states sitting without estate tax revenue they might have been anticipating, New Jersey is not one of these states.
After months of speculation on what would happen regarding the estate tax, Congress finally passed an extension of the 2001 tax cuts and provided some guidance as to the future of the estate tax. As we have discussed before, the estate tax had disappeared completely in 2010, but was scheduled to come back in 2011with higher tax rates and lower exemption levels than had been in effect in 2009.
A large part of effective estate planning is creating a strategy that will protect your assets while allowing you to pass them on to your heirs. One of the most effective ways to accomplish these goals is to give those assets away. Of course, accomplishing your goals while giving assets away is not always as simple as mailing a check or signing over a title, it requires strategic planning.