Estate Planning, Legal News, National News, Trusts, Uncategorized

What does the Fiscal Cliff Agreement mean for my estate?

What does the fiscal cliff agreement mean for my estate? The estate tax was a bit of a mixed bag – the $5 million dollar per person exemption was kept in place (and indexed for inflation continued) however the top rate is increased from 35% to 40% – effective yesterday. Other good news for estate planning – portability is kept in place and estate and gift remains unified – ie the $5 million stays in place for gift tax purposes as well. All are permanent law, so rejoice!

So, no real change for smaller estates worth under 5 million, however, if your estate is worth more than 5-10 million, the estate tax percentage increased.

Hope this helps! Please call the office of Skillern Law Firm if you have any questions or are ready to set up a trust or create a will.

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