There are changes to the current estate tax parameters that are scheduled to take place in 2013. At that time, the estate tax exclusion will be going down to $1 million (it is currently $5.12 million) and the maximum rate of the tax will rise from 35% to 55%.
When you see these numbers certain thoughts may come to mind. It is a pretty vast subject and a lot can be said about it, but we would like to look at a single facet here.
Assuming that there should be an estate tax at all (many people would argue that the tax should be permanently repealed), is a tax that takes more than it leaves behind to the rightful heirs to an estate a bit excessive?
Even people who are in favor of the estate tax may have to take pause before answering this question. If you started with nothing, worked hard all of your life, and found yourself in possession of some modicum of wealth, shouldn’t your loved ones inherit more of the taxable portion than the government?
This is an interesting topic and it is open to debate. However, no one could debate the fact that you certainly have the right to position your assets with estate tax efficiency in mind if you are, in fact, exposed to this federal levy.
Should you be interested in discussing tax efficiency strategies with an experienced professional, simply take a moment to pick up the phone to arrange for a consultation with a seasoned, savvy Oklahoma City estate planning lawyer.
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Parman & Easterday