A 2001 federal law known as EGTRRA resulted in an odd situation: a $3.5 million estate exemption and 45% tax rate in 2009, no estate tax in 2010, and a $1.0 million estate exemption and tax rate up to 60% set for 2011, unless Congress acted. In late December 2010, Congress enacted a number of changes to the federal tax code, including a $5,000,000 estate tax exemption and gift tax exclusion amount with a maximum tax rate of 35%. However, these changes will expire at the end of 2012, at which time the exemption and exclusion will revert to $1,000,000, with a tax rate of up to 60%.
Although this continuing uncertainty may appear to make estate planning difficult, it actually provides you with an excellent opportunity to ensure that you have a flexible estate plan to meet your needs. While taxation is an important consideration in estate planning, changes in family, business, or financial situations should also be reflected in your plan.
Through our commitment to client service, the attorneys at Kohler & Smith Co., LPA strongly encourage you to reevaluate your estate plan in early 2011 to be sure that your current estate plan is still the best option for you and your family. Our goal is to provide you with an updated estate plan that implements your wishes in the most effective manner.
Call (614) 888-4911 today to schedule a time to meet with one of our attorneys. We will review your current estate plan to ensure that it still meets your needs and goals, minimizes taxes in light of recent changes, and reduces the possibility of future surprises.