Readers in Texas have likely heard over the past few months that the estate tax exemption has been permanently raised to a level of $5.25 million. This, some may believe, leaves them little need for estate planning due to the size of their estate. This is not the case, at least according to one recent report that may be of interest to our readers.
Posts tagged "estate tax"
Many people entering into the estate planning process in Texas do so using common tools such as wills and trusts. Each of these options has benefits for beneficiaries and heirs. In some cases, however, trusts may be a better option. This is the case when a person creating an estate plan seeks to avoid some or all of the federal estate tax.
As many readers in Texas know, the sequester is the latest attempt in the nation's capital to make our leaders agree on how to reduce spending and pay for federal debts. This is the second such action this year, having had the fiscal cliff at the new year. Now, some are watching to see how the laws affecting estate planning are changed as the negotiations continue.
As we have discussed in this column before, the potential changes to the estate tax have been a point of concern for many of our Texas readers. Now, many beginning to consider the estate planning process can rest easy after the U.S. Congress sought to make the amount of the estate tax exemption permanent. This is a change from recent years where annual adjustments were made to the amount of money in an estate subject to the exemption.
As we have mentioned previously on our blog, the estate tax exemption is set to change at the end of this year. One recent report that may be of interest to readers in Texas highlights the fact that the exemption will change from $5.12 million to $1 million per individual if Congress does not act to stop the change. This may be why many people in our state are now considering a review of their estate planning documents.