The goals of an effective estate plan are disarmingly simple. In no particular order, you want to:
- Provide for and protect your spouse and children
- Direct a particular asset to a particular heir (e.g., a family-owned business to the child who is actively involved in the business with you)
- Pay the least amount of estate/inheritance tax possible
- Prevent spendthrift children from running through their inheritance
- Maximize the availability of subsidized aid for disabled heirs
- Add your own personal reason here
A survey conducted by Harris Interactive, for lawyers.com, found that less than half of Americans have estate planning documents in place. Click here to see the survey results.
This is discouraging; but understandable. Although the goals of an estate plan are simple, the mechanics of putting it into place can seem overwhelming. Many worry about joint and survivorship accounts, retirement plan beneficiary designations, living trusts, testamentary trusts, life insurance, etc.
At Bruner-Cox LLP, we can help. Our experts understand the imporance of estate tax planning. We work with you and your advisors – attorneys, brokers and insurance agents – to design a clear picture of where you want your estate assets to go, and when you want them to go there.
Planning Opportunities
There is good news on the estate tax front…for now.
The Federal estate tax, version 2012, features an applicable exclusion amount (commonly referred to as an individual’s estate tax exemption) of $5,000,000. There is also a new portability concept that allows a surviving spouse to utilize the unused exclusion of a predeceased spouse (for dates of death after December 31, 2010). To learn about The Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Authorization Act, H.R. 4853, click here.
The Act also re-unifies the estate and gift tax exemptions at the $5,000,000 amount. As a result, at least through 2012, every United States citizen or resident taxpayer has a total exclusion of $5,000,000 to use on lifetime gifting or testamentary gifts. The Tax Policy Center estimates that this will exempt 99.8% of estates from Federal estate tax.
The Ohio estate tax was repealed for estates of individuals dying on or after January 1, 2012. For more information, click here to read about House Bill 153, 129th General Assembly.
These changes may have an impact on your existing estate planning documents. Have you reviewed your documents lately?
For more information on estate taxes and estate tax planning, please contact , Individual Tax and Estate Planning Partner, at 330.497.2000.
