One of the issues that can have a dramatic impact on homeowners, families and the beneficiaries of large estates is changing laws related to estate taxes. With the implementation of new federal estate tax rules individuals can now exclude up to $5.25 million from estate taxes during their lifetime. What that means is that a couple could potentially exclude a total of $10.5 million from federal estate or gift taxes. With the implementation of the new federal estate tax rules, estimates show there are only about 3,800 estates which are sizeable enough to owe any federal estate tax in the current year. Had the new federal estate tax rules not gone into effect many owners of large properties or estates would have been subjected to a 55 percent tax rate on any portion of their estate over $1 million. As it stands now the top tax rate is capped at 40 percent. Through insightful estate planning, and by using tools such as a variety of trusts to protect assets, properties and other assets could potentially be passed on from generation to generation completely tax-free.
Gifting limits were also adjusted so that in 2014 individuals will be able to legally gift up to $14,000 per person without having those amounts impacting the $5.25 million lifetime exclusion. They would also not be required to pay taxes on those gifts. As an example, a married couple could give their adult daughter and son-in-law $14,000 each, for a total of $28,000. Funds could also be put into trusts and college-savings plans for children and grandchildren.
In planning your estate, the key to have a skilled estate planning lawyer for guidance, who not only has a complete understanding of estate law, but stays abreast of changes in estate planning rules at both the state and federal levels. Wollman, Gehrke & Solomon, P.A. have more than 60 years experience serving clients with estate planning. They know how important it is to invest the time in asset protection, wealth management, financial planning and all other estate planning matters. The firm is experienced and insightful in the creation of both simple and advanced estate plans.
If you have questions about the new tax rules, or you would like to find out how estate planning can help you protect your assets and estate, do not hesitate to contact an estate planning attorney in Floridatoday.