Financial Planning
Understanding Recent Changes to Gift and Estate Tax Legislation
Estate planning is an important aspect of the overall financial planning strategy for individuals and families. Although there are many reasons to have a comprehensive, updated estate plan, one of the more prominent reasons is to protect the distribution of an estate from high taxes. The tax legislation passed in December 2010 not only revamped the estate tax rules, but it also created unique planning opportunities.
Tax Planning 101: Bringing You Up-To-Date on the New Tax Laws
On December 17, 2010, President Obama signed the bill that implemented changes to the tax law for 2011 and 2012. This tax bill temporarily updates the federal estate tax exemption, extends the 2001 and 2003 federal income tax rate cuts, extends unemployment insurance for 13 months and, among other benefits, provides new payroll tax breaks for employees. Here is a general overview of the major points: