If you were to delight in remarkable financial success among the first things that might cross your mind would be to share the wealth with your enjoyed ones. While generosity is almost universally viewed as a favorable characteristic, you would succeed to think about the tax code prior to you divest yourself of any substantial amount of resources.
There is a gift tax in location, and it is combined with the estate tax. There is a unified exemption that stands at $5.12 million today. This suggests that the very first $5.12 million of any gifts that you offer during your life coupled with your estate as it is being passed to your successors can be transferred tax-free. The rest undergoes a 35% tax.
It must be noted that these figures are going to alter for the even worse in 2013 if we do not see any legislative procedures passed to change the existing laws. At that time the optimum rate will be treked to 55% and the exemption will be shaved down to $1 million.
The point is that if you were to provide $1 million in presents to your loved ones after the unified exemption is minimized to $1 million all of your estate would go through the estate tax.
That is, unless you are proactive about crafting your legacy with tax performance in mind. If you wish to have a professional examine your situation and make the suitable suggestions, take action right now to schedule an assessment with a great Somerset County NJ estate planning legal representative.