Archive for the ‘estate planning’ Category

“Cut Your Tax in 2010 isn’t about cheating the system,”

Wednesday, February 17th, 2010

“Cut Your Tax in 2010 isn’t about cheating the system,” explains Perrelli. “It’s about avoiding mistakes on big taxes like estate and capital gains. Legacies are being lost by the second or third generation for no good reason.”

Cut Your Tax in 2010 covers how:

•Personal and business assets can be protected in four smart steps.
•Capital gains taxes can ruin a family’s legacy.
•An estate plan can save your family more than taxes.
“Those working towards retirement have the most to gain with these insights,” explains Hedeker. “The book offers a way to start a dialogue between your own parents, spouse, and children — so that you can begin to work together to secure your family’s financial future.”

The book tackles the current estate tax debacle in Congress as a major hot button for 2010. Hedeker and Perrelli point out that those with a decent amount of assets built up need to understand that:

•The estate tax is currently scheduled to reappear in 2011, at only a $1 million exemption.
•Estates that escape a federal estate tax in 2010 may cause inheritors other tax headaches, particularly in capital gains taxes.
•Most states have their own estate or inheritance taxes. Illinois’ estate tax kicks in at $2 million and that won’t be changing anytime soon.
“People thought that no estate tax in 2010 would make this the ‘year to die,’” says Perrelli. “But it can be a nightmare because estates less than $3.5 million are now subjected to capital gains taxes instead.”

Cut Your Tax in 2010 is available at Amazon.com and other major booksellers. For more information about Cut Your Tax in 2010, visit www.cutyourtaxbook.com.

Nationally-renowned estate and tax planning attorneys Dean R. Hedeker and Anthony R. Perrelli are partners at the law firm of Hedeker & Perrelli, Ltd., in suburban northeast Chicago. Hedeker is also a CPA, Registered Financial Consultant, and Fellow of the American Academy of Estate Planning Attorneys (AAEPA). He has co-authored three additional books on estate planning. Perrelli has an MBA and is also a member of the AAEPA. He has been a featured source for Money Magazine, WGN News, and WLS/Chicago. Learn more about Dean Hedeker and Anthony Perrelli at www.cutyourtaxbook.com.

Read more: http://www.earthtimes.org/articles/show/new-book-by-chicago-tax,1166332.shtml#ixzz0fpdARXUN

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Why the Estate Tax Exclusion Seems Destined to Remain at $3.5 Million Dollars

Tuesday, July 7th, 2009

Although there are at least three sets of proposals currently being proposed by either the House, the Senate or the Treasury Department, the aspects which these proposals have in common indicate one thing. Congress seems very likely to cement the $3.5 Million applicable exclusion amount by making it permanent.

The House bill is H.R. 436,entitled the Certain Estate Tax Relief Act of 2009 was introduced January 9, 2009. Notably it would eliminate the sunset provision of the Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA)and make permanent 2009’s $3.5 million annual exclusion amount. Additionally, it would set the highest marginal tax rate at 45% with a five percent (5%) surcharge for Estates over $10 million.

The Senate Bill is S.B. 722, entitled the Taxpayer Certainty and Relief Act of 2009, was introduced March 26, 2009. Section 301 would make permanent the 2009 $3.5 million applicable exclusion amount and provide an adjustment for inflation.

The Obama Administration has also issued a proposal in the form of the “Treasury Department’s General Explanations of the Administration’s Fiscal Year 2010 Proposals.”This document essentially containing all the administration’s tax proposals,and also known as the “Green Book” was released on May 11, 2009. In this document the administration proposed to make this years $3.5 million applicable exclusion amount permanent.

Although there are some significant difference between these three proposals in other areas of exclusion portability, family entity valuation discounts, and term restrictions on Grantor Retained Annuity Trusts ( GRAT) they all propose to cement the $3.5 million per spouse applicable exclusion amount. So it seems that this will most likely be the appropriate figure for the near to midterm.

However, given the huge fiscal deficits and the changing nature of the world’s monetary system the federal government may soon need to raise revenue wherever it can. And since such a tiny percentage of Americans will leave an estate anywhere near the ballpark of 7 million dollars, it is possible and perhaps likely that this level may be reduced in future years. One other possibility is that if we experience hyper-inflation and the applicable exclusion amount isn’t indexed for inflation, that many more people will leave an estate coming close to or exceeding $3.5 million.

ABOUT THE LAW OFFICES OF CHRISTOPHER R. TWINING
Christopher R. Twining, Attorney at Law, based in the Westwood Neighborhood of Los Angeles is an innovative estate planning, probate & trust administration, and elder law attorney.
Visit Christopher R. Twining’s website at http://www.twininglaw.com

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