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Article:
You Cannot Take It With You
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
There is an old saying that you cannot take it with you
when you die. There is biblical support for this too.
Indeed, while on earth, we are encouraged to store up
treasures in heaven. But the purpose of this article is
to let you know a little bit about estate planning so
that you can leave some of your treasures to your loved
ones when you go rather than using them to pay for your
most disfavored government program. In other words, you
cannot take it with you but you may still be able to
decide where to leave it when you go.
As
you may know, federal estate taxes are a tax on the
transfer of property when a person dies. Whether or not
federal estate taxes are charged depends upon many
things including the value of a person's estate. The
value of a person's estate is measured by the value of
the property rights that are shifted from the person who
died to others.
Estate tax rates are high on the amount of the estate
that is over the exemption threshhold. For example,
beginning in 2011, it appears that the estate tax
exemption will be $1,000,000 with a tax rate of up to
55% for amounts over one million dollars. That means in
simple terms that generally a person dying can leave a
million dollars worth of property to someone else
without paying estate taxes. Of course, there are
certain exceptions. For example, if gifts have been
made during your lifetime, they may count against the
exemption. It is always good to consult with counsel
relating to your special circumstances. But if you die
with a $1.5 million dollar estate, it is quite possible
that the estate may have to pay close to $250,000 to the
IRS unless there has been some planning.
Interestingly, there is no estate tax due if you die in
2010 at least as of the writing of this article.
Washington has spent so much time trying to dig us out
of a ditch and then bickering over who is at fault for
the great rescession that the previous estate tax
exemption threshold is no longer applicable. As it
stands now, if you die in 2010, there will be no estate
taxes due. Imagine your descendents encouraging you to
take that exotic cave diving trip or booking you and all
expense paid vacation to Afghanistan. Warning --- don’t
do it. You should not bet against the government
finding a way to restore 2010 estate taxes
retroactively. The Supreme Court even suggested that
was possible.
All is not lost for estates valued over a million
dollars, particularly for married couples. For married
couples with a combined estate over one million dollars,
there are documents that can be executed that can
sometimes shield up to two million dollars from taxes
(one million dollars each). For these instances, it is
important that you consult an estate planning attorney
regarding a Trust (i.e., the so-called A-B Trust).
There may be other options as well. If you have any
questions regarding legal matters, feel free to email me
at stevefahlgren@gmail.com and I will try to provide
some general information in future articles.
Disclaimer: The above Article
is intended to give you, the consumer, insight into various legal topics. This
information is not intended as legal advice, but rather helpful topical
information.
 If
you require professional legal services regarding
Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law issues, be proactive in
protecting your legal
rights by seeking the legal advice of
an experienced
Jacksonville criminal defense attorney
& lawyer. Contact
The Law Offices of
Steven M. Fahlgren, P.A.,
by calling
904.845.2255.
Jacksonville Attorney - Lawyer,
providing experienced Consumer Protection, Family Law, Estate Law,
Employment Law, Business Law, and Bankruptcy Law legal
representation in Jacksonville, Hilliard, Duval County,
Nassau County and the surrounding Northeast Florida areas.
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