From the edge of the cliff

04 Jan

I think it’s generally a bad idea to react in fear.  And, I don’t like legislation that results from congressionally-created crisis.  That being said, the so-called fiscal cliff has been navigated.  We have new tax laws.

There are changes to taxable rates for income and capital gains, yes.  My focus, of course, is on the death tax.  The bill that passed maintains the estate, gift and generation skipping transfer taxes at $5 million adjusted annually for inflation.  It moved the top rate from 35% to 40%.

That’s essentially where we were.  So, we have increases in rates but basically the same rules.  Do you fully understand the annual exclusion?  The lifetime exclusion?

If you’re not a client, I haven’t taught you about estate planning one on one.  Call for your class today.

 

photo credit: Rennett Stowe

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