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How Do the New Estate Tax Rules Affect You?

In early 2013, there were new rules enacted on federal estate taxes. Effective January 1, 2013 the top tax rates on estates rose from 35% to 40%, but tax would NOT be imposed on the first $5.25 million of an estate (adjusted for inflation to $5.34. million in 2014). While the limits are high, the estate tax could still affect you or your family. In addition to the federal estate tax, many states impose an estate tax on estates valued at approximately $1 million.

Estate planning is a great way to plan the steps you should take to minimize potential tax burdens to beneficiaries. For more information, please contact a Sansiveri tax professional at 401-331-0500.