President Barack Obama’s April 10 FY 2014 proposed budget contains a number of estate, gift, and generation-skipping transfer (GST) tax proposals.  Starting in 2018, it is proposed that the tax scenario will revert back to 2009 rules in order to trim the $1.8 trillion deficit, namely by relying on taxing the estates of high-income earners.

If passed, the following parameters will be implemented:

  • Gift tax rate of 45% (as opposed to the current 40%)
  • $3.5 million estate tax exemption (as opposed to the current $5 million)
  • $1 million gift  tax exemption

The provision would replace the current American Taxpayer Relief Act (ATRA) that was created to permanently provide relief to the estates of hard working decedents.  The new provisions would be effective for the estates of individuals that pass away, and for transfers made, after December 31, 2017,

What does this mean for you?  This means that over time much smaller estates would be taxed at a much higher rate that may threaten the wealth you worked your whole lifetime to accrue.

With the unpredictable budget proposals affecting estates across Florida, it is crucial to schedule a routine review with a well-versed South Florida estate planning attorney.  For more information on successful Florida estate planning and effective asset protection tools, please contact the South Florida law firm of Wild Felice & Partners, P.A. at 954-944-2855 to schedule your free consultation.

Being properly informed is the best way to stay a few steps ahead of the shifting estate tax patterns.

It’s a Wild world. Are you protected?SM

 

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