HAZY FUTURE FOR ESTATE TAX
One thing to keep in mind when you consider the subject of estate planning is the fact that circumstances are constantly changing. So when you initially devise an estate plan with the assistance of a licensed Redlands CA estate planning lawyer you should be mindful of the fact that revisions may be required.
Sometimes the updates become appropriate because of events that may take place within your own life, and one of these would be a change in marital status. And at other times your existing estate plan needs to be revised because of something that takes place that is out of your control such as a change in the tax code.
We are facing such a change at the end of this year. As the laws currently stand the estate tax exclusion is going to be reduced from the $5.12 million that is in place as of this writing all the way down to $1 million when 2014 arrives. The maximum rate of the tax is scheduled to rise as well. Right now it is 35%, but at the end of this year it is rising to 55%.
It should be noted that the powers that be could pass legislation to alter these parameters between now and the end of the year. Since tax matters are a politically volatile subject and this is an election year it is likely that any moves that may be made won't take place until after the election.
Given the hazy future of the estate tax it is a good idea to keep in touch with your attorney and be prepared to make changes to your existing estate plan if they become necessary.