The Wealthy Should Make Estate Planning a New Year’s Resolution

Wealthy families should make estate planning part of their New Year’s resolution as taxpayers have only one year left to take advantage of the $5 million gift and estate tax exemptions and the 55% tax rate.

The gift and estate tax exemptions are scheduled to revert back to $1 million in 2013 if Congress does not take any action. Additionally, the estate tax rate will revert back to 55% with a 5% surcharge on taxable estates that total between $17.184 million and $10 million. President Obama has urged that the estate tax exclusion revert back to the 2009 amount of $3.5 million (the gift tax exemption would still revert back to $1 million). Families also have the option to elect portability in 2012, though it is not available for state estate tax exclusions.

See Anne Tergesen, Estate Planning for 2012, SmartMoney, Dec. 13, 2011.

Special thanks to Jim Hillhouse (WealthCounsel) for bringing this article to my attention.