Year-end can be a critical time for investors who want to take advantage of certain gift- and estate-planning strategies.
With the establishment of a historically high $5 million federal estate tax exemption (indexed for inflation), many taxpayers believe they do not have to plan for their estates. But federal estate taxes are only one aspect of estate planning. It’s critical to have the right documents in place and plan for potential state estate taxes
The American Taxpayer Relief Act of 2012 made several estate tax provisions permanent, creating planning opportunities that advisors may review with clients seeking to lessen the tax impact. 1. New exemption amount affects all clients The now-permanent $5 million exemption may have unintended consequences for clients at lower wealth levels who feel they do not