Questions: My Net Worth is in excess of $1,400,000 and my wife and I own most of our property in joint name. I understand the estate tax law permits us to transfer up to $5 million when we both pass away. Does this mean I do not have anything to worry about?
Answer:
Yes and No. Current estate tax law permits each individual to pass $5 million to his or her heirs at death ESTATE TAX FREE. But, the exemption goes back to $1 million in 2013. It is anyone’s guess as to whether this law will be changed (again) by 2013.
There are several opportunities in the new estate tax law provisions to plan for 2013 no matter what Congress decides. It is important that we review these provisions with you.
Feel free to contact me if you or someone you know has this type of situation. Financial Planning advice presented here is general in nature, and individual circumstances make applying these general rules tricky; thus, the above answer cannot be applied to all circumstances because the slightest variation could cause a different outcome.