Intelligent people stay alert every step of the way with regard to positioning financial assets. Things can change in the blink of an eye and you must be prepared to react quickly and effectively.
The estate tax is something that every successful person should be concerned about. Your financial situation could change for the better over the years. It is possible that the estate plan you originally constructed was put into place without concern about estate tax exposure based on your portfolio at that time.
Given the fact that the maximum rate of the estate tax is 35% and rising to 55% next year you do not want to go through even a single day with your legacy exposed to this federal levy.
Whether or not you are in taxable territory is dependent upon the total value of your resources in relation to the estate tax exclusion. Right now the exclusion is $5.12 million, but upon the expiration of the tax relief act that was passed in 2010 the exclusion will be just $1 million.
The tax act expires at the end of 2012. So, you could be totally safe from the estate tax one day and very much exposed the next.
Retirement planning can take some ongoing adjustments, and it’s important to keep in mind markets fluctuate and your own capabilities evolve over time.
The best way to go forward is to develop a long-term working relationship with a good Oklahoma City financial planning lawyer. Your attorney will gain an understanding of your situation and always be available to advise you as things change.
Author, President and Founding Attorney
Parman & Easterday