Congress extends estate and gift tax exemption to increased limits of $5,000,000.
Estate and Gift Tax Exemption amounts is said to be extended at increased levels and made permanent by Congress. It is made possible to materialize the goal of having stability to the estate planning field that could help preserve wealth for the future generations instead of being paid to the government.
The IRS during the year of 2011 and 2012 has specified rule on estate and gift taxes. This had been temporarily higher than the previous years when it comes to the amount of exemption on estate and gift tax. This amount for limits on the estate and gift tax exemption is reported to reach up to $5 Million. Not until on January 1, 2013, those amounts had been reported to drop back to $1 Million. More exemption limits or the $5 Million had been extended and said to be made permanent. It has been made possible as a part of the fiscal cliff avoidance legislation. This actually leads to the stability on the field of estate and gift tax planning.
The amount of limits that has been made doesn’t affect everyone. However, the extension of these limits offers opportunities to plan around estate laws and enables people create their vehicles to pass their accumulated wealth on their successors. The Congress passing fiscal cliff legislation serves as an aid to individuals who can pass their wealth to their children or other causes that they want to support.
It is reported that now that the Congress had changed the temporary estate and gift taxes to a permanent status, individuals could find this as good opportunity for setting up and planning for their estate. This is highly beneficial as it could protect their asset for the benefit of their children. Their successors would typically have no fears on the possible changes on estate and gift tax as it has been already made permanent. It is said that the sooner they set their estate plan with
Estate Planing Lawyer that tailors their needs, situations and goals, the better it would be for short term and long term.
Name: Michael Bailey
Address: 11001 W. 120th Ave. Broomfield, CO 80021
Organization: Michael Bailey Law Office