Huntsville residents, North Alabama residents, and residents throughout the State of Alabama will likely be affected by large state deficits. In Jefferson County, employees are awaiting the effect of tax changes. There are Alabama tax lawyers getting ready to go to trial over the Alabama property tax system. And this large deficit is event causing squeezes to Alabama educators.
It appears that every person, in every county, in every state throughout this country is feeling the squeeze. During these times, it can be really hard to think about estate planning, but effective estate planning can make your loved ones’ transition that much easier as well as allowing your money to go who YOU want it to, and not the IRS.
One effective way to do that is through gifting to your heirs. The Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 takes the federal estate tax exemption and puts it back together with the federal gift tax exemption. What does this mean? This means that the lifetime gift tax exemption for 2011 and 2012 has been increased from $1 million to $5 million per person. That means that a couple can actually pass $10 million to their loved ones or family.
Even more, those who had previously used up their $1 million exemption can now make additional gifts of up to another $4 million to use up their exemptions. That is…as long as they do so in the next two years.
The estate planning and elder law attorneys of Martinson & Beason, P.C. can certainly assist you in all of your estate planning needs. Call us or email us if you would like to find out how you can help pass more of your estate to those who YOU want.