How to Get Ready for Gift and Estate Tax Changes Before It Is Too Late

April 13, 2012

How to Get Ready for Gift and Estate Tax Changes Before It Is Too Late

On January 1, 2013, lifetime estate and gift tax exemptions will be reduced from over $5 million to just $1 million per taxpayer. Such a huge reduction has many people worried, especially those with assets in excess of $3 million. Even if you do not have a large estate, the changes may cause adverse effects to your plan for your estate and your heirs.

Unlike others in Las Vegas, do not gamble your hard-earned money away; nor should you bury your head in the sand and wait to see how it all turns out. Instead, take a proactive approach and starting protecting your assets this year while it is still advantageous to do so.

Meet with a trusted advisor and set up an estate planning strategy to minimize your tax consequences, taking a diverse approach and using a few different tax-saving techniques. That way, if one does not work out as planned, you may still save taxes with another.

Tax Saving Techniques

Your attorney will work with you to establish a comprehensive estate plan that addresses what will happen during your lifetime and what will happen after your death. You can jointly decide which tax techniques will work best for you and your estate. Techniques may include:
-Purchasing an insurance policy to cover estate taxes
-Gifting and advancing bequests before year's end
-Setting up trusts -- there are many options
-Establishing a succession plan that is set into motion this year
-Creating a family limited partnership
-Using life and disability insurance

As the year's end approaches, do not assume Congress will come to the rescue at the last minute as it did in 2010. Consult with an experienced estate planning lawyer who is knowledgeable about the effects these tax changes will have on you. Together, you and your lawyer can work out a strategy that will help save your assets.

Article provided by Goldsmith & Guymon
Visit us at http://www.goldguylaw.com