RATE OF ESTATE TAX MAY SHOCK YOU
While it is indeed important to look ahead toward the future, the fact is that as a young adult you may not be that interested in the details of tax laws that are applicable to the field of estate planning. However, we all care a great deal about the well-being of our loved ones, and this tax can have an extraordinarily negative impact on succeeding generations of your family.
So, it is important to gain an understanding of it so that your family is not taken by surprise because there is a great deal of money in the balance.
One reason why some people may not give the estate tax a lot of thought is because of the fact that they don't think that it will be applicable to them. In fact, the exclusion amount is going down to just $1 million next year so if you include your home, all of your savings, and any inheritances you may have received throughout your life you could be exposed to the tax without considering yourself to be rich.
If you are thinking that your family wouldn't lose much if the estate tax was to be applied, you may want to think again. The current rate of the estate tax is 35%, and it is going up to 55% when this year comes to a close.
Yes, you read that right--this is a tax that will take more of the taxable portion of your legacy than it leaves behind to your family.
There are however steps that you can take to reduce or sometimes even eliminate your estate tax exposure. If you would like to discuss your options with an expert, simply take a moment to arrange for a consultation with a good San Bernardino estate planning lawyer.