2010 unique in the world of estate taxation; estate tax may go back into effect in 2011
Estate planning attorneys provide valuable guidance to clients
LAS VEGAS – Estate planning is complicated and can be nearly impossible for a layperson to understand. With each new year comes a new set of laws and regulations to navigate, which is time-consuming.
For example, this year is a unique year for estate taxation. An estate tax is imposed when a deceased person’s assets are transferred to their heirs. While the tax doesn’t typically apply to assets left to a spouse or charitable organization, it does apply to assets left to children, grandchildren, friends, etc.
As part of President Bush’s 2001 tax cuts, the estate tax was repealed for 2010 – meaning that the estate of anyone who dies in 2010 will go to their heirs completely untaxed. Although repealed this year, unless Congress decides otherwise, the estate tax is set to go back into effect – at a higher rate than it was at in 2009 – in 2011.
Prior to this year, estates subject to taxation were those that totaled $3.5 million or more per individual and $7 million or more per couple. The scheduled return of the tax in 2011 could mean a $1 million exemption per individual and $2 million exemption per couple and a 55 percent tax rate. This means any assets one owns with a value exceeding $1 million will be taxed at 55 percent.
It’s intricacies such as this that make it important to work with an attorney who specializes in estate planning when creating a will, trust and estate plan, which can include everything from final arrangements, to power of attorney, to transferring interest in a business and even deferring or decreasing estate taxes.
“There are avenues that can be pursued to reduce estate taxes,” said Brooke Borg, attorney and founder of Borg Law Group. “However, it’s critical that these options are followed using a licensed attorney who understands the relevant laws. A powerful estate plan can turn into a disaster when put together incorrectly.”
Borg Law Group provides legal services to individuals and businesses in the areas of real estate, corporate law, estate planning and probate. The firm’s founder, Brooke Borg, is admitted to the State Bar of Nevada and the State Bar of Michigan.
For more information regarding Borg Law Group call 702-318-8808 or visit www.BorgLawGroup.com.