It looks like the federal estate tax will be restored on January 1, 2011, and a lot of families are going to feel it, says a New York Estate Lawyer.
No one knows for sure, however, which is creating plenty of uncertainty when it comes to financial planning, especially for the retired, who may have to decide how much they can live on and how much they will have to give away as gifts to avoid being taxed.
The estate tax in 2009 allowed $3.5 million to be exempt, according to New York Estate Lawyers. The tax, should it return in 2011, will only allow a $1 million exemption, and rise from the old rate of 45 percent to a new rate of 55 percent.
New York Estate Lawyers have determined that that the easiest way to help ease the tax burden is giving the money away. As much as $13,000 a year can be given away to any number of people, and there is no gift tax involved. Spouses can combine it, making it $26,000 for each recipient. The money could also be put into a trust for the benefit of someone else.
There is still a chance that the lower 2009 rates will be restored, which will make those concerned about estate taxes a little happier. But an attorney told a New York Estate Lawyer, “There’s a very good chance that Congress will not act until spring.”
In such chaotic economic times, no one can be sure what tomorrow will bring. Keep ahead of future speculations by acquiring the services of a New York Estate Attorney. You’re going to need the best possible legal mind to order your estate or the estate of a loved one, and you’ll find it in a New York Estate Attorney.
The law offices of Stephen Bilkis & Associates has caring New York Probate Lawyers that can help you plan your estate. Our New York Probate Lawyers can help you probate an estate, write a will or set up a trust. We have convenient offices in New York City, Brooklyn, Queens, Bronx, Suffolk and Nassau County. We want to help you through what may be a difficult time with as little problems as possible and offer a free consultation at 1-800-NYNY-LAW (1-800-696-9529). Call us today to take advantage of this free consultation and speak to a New York Probate Lawyer from our firm.