Thursday, March 14, 2013

Some Reduced Taxes

We wrote last week about the January fiscal cliff deal that allows big changes in our office.  We are happy to report that all estates worth less than $5 million (after a person’s death in 2013 or later) should not have to pay any federal estate tax. 

Without that fiscal cliff deal, $4 million of that amount could have been taxed at about 40% and up.  Importantly, this $5 million exemption does not have an expiration date and will be inflation-adjusted each year. 

We have been waiting since August of 2001 for an increase of the estate tax exemption amount that will not expire.  Under the 2001 law, the increased exemption amounts were scheduled to end and drop back to $1 million at expiration, first in the year 2011 and then in 2013. 

During the 12-year wait, we nearly lost hope of having an exemption amount our clients could reasonably count on, we had to keep having to introduce everyday people to the often complicated planning designed to minimize estate taxes at death. 

Now we are able to focus on what we consider the more important issues for our clients - plans to minimize family conflict and get the most benefit to themselves and their families from what they worked their whole lives to save. 

For advice creating an estate plan that best helps your family or charity, call our office at (815) 436-1996 for an appointment.  © 2013 Gruber Law Office, Ltd.


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Our law office assists families in Plainfield, IL and the surrounding areas, including Joliet, Naperville, Aurora, Bolingbrook, Channahon, Crest Hill, Lockport, Minooka, Oswego, Romeoville, Shorewood, and Yorkville, in Will County, DuPage County, Kendall County, and Kane County.



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