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Posts Tagged ‘wealthy’
Change of Estate Tax Law
Wednesday, August 19th, 2009
Wealthy residents from Connecticut usually flee to Florida in avoiding the estate tax in the state. But now, they don’t need to do that because there’s a new law (House Bill 6802) enacted on Sept. 8. The law states that deaths occurring from January 1, 2010 onwards, as much as $3.5 million worth of estates and gifts will be exempt from tax. This raised the threshold for taxable gifts and estates from the existing $2 million level.
In Connecticut today, when the estate is exactly $2 million, there will be no estate taxes paid. However, an estate of $2,000,001 pays Connecticut $101,700 in taxes. Fortunately, this will change beginning 2010. The new legislation will not only increase the threshold exemption, it will also reduce the rates by 25%. For instance, a $5.1 million estate which currently pays Connecticut $402,800 will only pay the state $130,200 if the death occurred after year-end.
This means that you can now stop avoiding Connecticut in planning and establishing your residence. State Rep. (R-149th Dist.) Livvy Floren said, “These changes may be considered good step toward the right direction.” So if you’re a resident of Connecticut or you have real property there, you might want to revisit and make current your estate plan with an attorney soon.
Tags: attorney, Connecticut, estate plan, estate tax, Florida, gifts, law, Livvy Floren, state, wealthy
Posted in Estate Planning | No Comments »
Create your Estate Plan Today
Saturday, July 25th, 2009
Better Business Bureau reminds people that estate planning is not just for the wealthy. They advise consumers to create an estate plan if they have something of value to pass on to their loved ones after death. According to surveys, 55% of adults don’t want to set up an estate plan because either they don’t want to think of dying or they believe that they don’t have any assets to pass on.
However, if you don’t give your final instructions, nobody would know where your money should go or how will your children be taken cared of. Do you want to leave these important decisions to the state? If not, it’s important to create an estate plan and ensure that your wishes will be followed.
Creating an estate plan may be simple if you just draft a will. But it can also be complex when you’re trying to set up a trust or a living will. A will is something that you create to allocate your assets and establish guardianship of your children. On the other hand, a living trust could set up conditions to distribute your assets while reducing inheritance taxes and avoiding probate. Finally, a living will communicates a person’s desire for lifesaving measures in case there’s mental incapacity to decide on an emergency medical situation. To help you draft these important documents, make sure that you consult an estate planning attorney.
Tags: attorney, Better Business Bureau, estate plan, estate planning attorney, living trust, living will, wealthy, will
Posted in Estate Planning, Family Trust, Wills | No Comments »