• Skip to main content
  • Skip to primary sidebar
  • Skip to footer

Kuhn and Kuhn Law Firm

South Carolina Estate Planning Attorneys

  • Home
  • Our Firm
    • About Our Firm
    • About The American Academy
    • Advantages of Working With Our Firm
    • Attorney and Staff Profiles
    • Talkin Law
  • Services
    • Asset Protection & Business Planning
    • Charleston Pet Planning
    • Elder Law & Medicaid Services
    • Estate and Gift Tax Figures
    • Estate Planning Services
    • Family Farms and Businesses
    • Healthcare Documents and DPOAs
    • Incapacity Planning
    • LGBTQ Estate Planning
    • Living Trusts
    • Probate
    • SECURE Act
    • Special Needs Planning
    • Will Packages
  • Reports
    • Advanced Estate Planning
    • Basic Estate Planning
    • Estate Planning for Niches
    • Trust Administration
  • Resources
    • Client Resources – Estate Planning
    • Consumer Resources – Estate Planning  
    • Elder Law Reports
    • Professional Resources
  • Contact Us
    • Directions to Our Charleston Office
  • Blog
Home / General / Estate Tax: Are You Exposed?

Estate Tax: Are You Exposed?

December 17, 2011 by John Kuhn, Estate Planning Attorney

One of the most extreme sources of asset erosion that must be taken into consideration when you’re planning your estate is the federal estate tax. You may hear it said that the estate tax is not something that ordinary people have to worry about because it is only levied on “the rich.” The reality is that you don’t have to be someone who was born with a silver spoon in your mouth to be exposed to the estate tax, especially given the fact that the parameters are scheduled to change in the beginning of 2013.

Whether or not your estate is exposed to the estate tax is going to depend on its value relative to the estate tax exclusion that is in place at the time of your death. At the present time, the estate tax exclusion is $5 million and the maximum rate of the tax is 35%. What this means is that only the portion of your estate that exceeds $5 million in value is subject to this 35% federal levy. These parameters are in place due to the passage of the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010 last December.

This tax relief act is going to expire at the end of 2012. If it does in fact sunset without any new legislation having been passed that impacts the estate tax parameters, the estate tax exclusion will be reduced to just $1 million in 2013 and the maximum rate of the tax will come in at 55%. If you and your spouse worked diligently throughout your lives, purchased property that appreciated, inherited some assets, and planned intelligently for the future all along the way the value of your legacy may indeed exceed $1 million even if you do not consider yourself to be wealthy.

While it is possible that there will indeed be changes to the laws that raise the exclusion before this tax act sunsets at the end of next year there are no guarantees. It would be wise keep a close eye on the matter and stay in touch with your estate planning attorney as the expiration of this act draws nearer.

  • Author
  • Recent Posts
John Kuhn, Estate Planning Attorney
Former South Carolina State Senator, John Kuhn is a founding partner of the Kuhn & Kuhn Law Firm.The Kuhn & Kuhn Law Firm is a boutique estate planning (wills, trusts and probate) firm, which he and his wife opened in 2002.The law firm was created to serve clients who want an excellent and thorough estate plan.
Latest posts by John Kuhn, Estate Planning Attorney (see all)
  • Preparing for Coronavirus - March 10, 2020
  • Incapacity Planning - December 20, 2018
  • Special Accounts for People with Special Needs - December 17, 2018

Filed Under: General Tagged With: Elder Law, Estate Planning, Estate Tax

Primary Sidebar

Subscribe to Our Blog

Kuhn & Kuhn Law Firm

Charleston
473 Savannah Highway
Charleston, SC 29407
Phone: 843-577-3700

Charleston Map

map for Charleston office

Kuhn & Kuhn Law Firm

Summerville
421 Old Trolley Road
Summerville, SC 29485
Phone: Our Satellite Office

Summerville Map

map for Summerville office

Opening Hours

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
Friday9:00 AM - 5:00 PM

Footer

  • About The Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

© 2023 Kuhn and Kuhn Law Firm
All Rights Reserved.
Attorney Advertisement

footer-logo

Subscribe to our newsletter

  • Facebook
  • Linkedin
  • Youtube
  • Twitter

© 2023 American Academy of Estate Planning Attorneys, Inc.

Copyright © 2023 · Kuhn & Kuhn on Genesis Framework · WordPress · Log in