Bush Tax Cuts to Stay for 2011/2012
First, the good news. It looks like President Obama and the Republicans in Congress have reached a deal to raise the estate tax exemption to $5 million and lower the rate to 35%. Now for the bad news, it is to last for only two years, when we will again be faced with the threat of a return to a $1 million exemption and a 55% rate!
The Prudent Person Will Avoid Complacency
So what’s a reasonably prudent person to do? Eat, drink, be merry and PLAN for either scenario. Whatever your politcal persuation, this “living in limbo” can lead to a sense of complacency. And because no one EVER thinks that their are going to die (right?!), waiting may not work.
The IRS Wants You to Procrastinate
Waiting is the IRS’ preferred approach for taxpayers and what they are banking on. Procrastinating inevitably leads to unexpected, negative tax results (read the IRS gets more and your heirs receive less). The tax consequences – when coupled with a non-existent, outdated, or poorly conceived Will or Trust – could bring disastrous results family.
Now Is Your Opportunity to Care for Your Family Even After You Are Gone
The new year is right around the corner. Don’t let the IRS bus that may be coming back around that corner in a few short years, clobber you!