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Sacramento Estate Planning Attorney

Posts tagged "heirs"

Estate planning helps Californians deal with state taxes increase

High-income Californians may have expected a modest tax increase this year but that does not mean anyone is excited about having to pay up to 3 percent more in income taxes this year. While dependent exemptions went up a paltry $6 per child, people making over $250,000 this year will likely pay thousands more in taxes than in past years. Fortunately, prudent wealth managers know that savvy estate planning can save a person untold amounts in unnecessary taxation over their lives and the lives of their heirs.

How to talk to heirs about an inheritance

Californians may be interested by a recent New York Times piece on the predicament of parents and children who have experienced the turmoil of inheriting a large sum of money. While this certainly seems like a very fortunate problem to have, some heirs have claimed that the lack of communication regarding a potential inheritance has left them ill-equipped to handle the responsibility and burdensome expectations that may accompany that money, with the consequences being irresponsible financial management and family discord. Proper estate planning may be the answer, but there is no one-size-fits-all answer when it comes to familial communication.

Baby Boomers and their parents face estate planning challenges

The first wave of the Baby Boomer generation has only recently reached the traditional retirement age of 65. Their parents, the generation that was steeled by the Great Depression and fought in World War II and Korea, are in their 80s and 90s. Each generation has faced its particular obstacles, but they are united in the challenge they currently confront: how to create an effective estate plan.

Man intentionally wills property, money to government

Most people go through the estate planning process to ensure that when they die, as much of their estate as possible escapes the clutches of Uncle Sam. However, in a case that California readers may find interesting, one Florida man chose to do the exact opposite. That is, he intentionally left his historic house, along with $1 million, to the federal government through his will.The man, who died in December 2010 at the age of 87, had lived in his Coral Gables home for almost his entire life. The home was reportedly worth more than $1 million, and it sold for $1.175 million in a recent auction. A news report states the contents of the home will also be auctioned off by the government in January.

Estate taxes may rise in 2013

One of the concerns that California residents have when they do estate planning is the effects of federal taxes on their estate. At the moment, estate taxes have an exemption amount of $5 million with a top marginal rate of 35 percent, but that exemption is set to expire in 2013. If no action is taken by Congress, then the exemption will fall to $1 million and the top marginal rate will rise to 55 percent. So readers of this blog may be particularly interested in a piece of legislation by Rep. Jim McDermott, D-Washington.The bill, called the Sensible Estate Tax Act of 2011, was recently introduced a week before Thanksgiving. If passed, the bill would allow the top marginal tax rate to rise to 55 percent, as it would under current law. However, the bill also proposes that the current exemption amount be allowed to expire, and that the $1 million exemption be indexed for inflation starting in 2000. That would mean the exemption amount would fall from the current $5 million for individuals and $10 million for couples to $1.31 million for individuals and $2.61 million for couples.

My Sacramento law practice, Michael A. Sawamura, Attorney at Law, focuses on wills, trusts and estate planning law in addition to business law and corporate defense services. My clients include professionals, government employees, small businesses, blue-collar workers and national corporations.

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