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Why should the government or anyone else direct what happens with your estate assets? Why should a court, a stranger, or someone other than your choice make the medical and financial decisions for you if you become sick and incapacitated? Why should anyone other than your spouse, life partner, or the one you choose make the decisions about your illness, hospital visits, your funeral and what happens to your estate?

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Ronald J. Cappuccio, J.D., LL.M.(Tax) is a tax and business attorney practicing since 1976. Ron is a Graduate of Georgetown University, the University of Kansas and the Georgetown University Law Center. He also studied at Exeter University, UK.


Ron protects business and individual taxpayers from IRS Audits, Tax Collections (including bank levies, wage executions) and IRS Appeals. Employee vs. Independent Contractor Issues, Manufacturer, Pharmaceutical and Restaurant and Pizza audits are a special area of emphasis.

Wednesday, February 06, 2013

New Tax Law Impact on Estate Planning


The American Taxpayer Relief Act of 2012. the "Fiscal Cliff"   law has important tax issues in Estate Planning:
  • The anticipated large increases in federal estate, gift and generation skipping transfer taxes were averted.  The estate and gift tax exemption amount  is $5 million (indexed for inflation)  For 2013, the exemption amount is $5.25 million. 
  • The top estate, gift and GST tax rates increase from 35 percent to 40 percent for transfers in 2013 and later. Many States have much smaller exemptions. For example, the exemption amount in New Jersey is $675,000. This means many estates will have NJ Estate Tax while being exempt from US Estate Tax.
  •  “Portability” for estate tax exemptions is continued. That allows the estate of the first spouse to die to elect to transfer his or her unused estate tax exemption to a surviving spouse. Portability does not apply to New Jersey Estate Tax
Gift Tax Exclusion. The annual gift tax exclusion amount (which is indexed for inflation) increased to $14,000 per recipient on January 1, 2013.A husband and wife can joint give $28,000 per recipient.
Because there is relative certainty in Estate and Gift Tax law for the first time in more than a decade, now is a good time to review your estate plan. Even if your assets are below the federal exemption amount, planning may be appropriate to maximize your New Jersey estate tax exemption. Also, the high tax exemption allows greater flexibility in dealing with non-tax protections for your estate plan.

Ronald J. Cappuccio, J.D., LL.M.(Tax)
February 6, 2013