ESCOBAR AND ASSOCIATES ANNOUCEMENT REGARDING COVID-19

Escobar and Associates Attorneys at Law remains open during the COVID-19 Coronavirus pandemic. Legal services are defined as “essential” within the Stay at Home Order executed by Florida Governor, Ron DeSantis. We remain committed to providing uninterrupted legal services to all clients. We also remain dedicated to the health and safety of our clients and staff. Within the office, our firm has already implemented protocols to keep clients and staff safe during this crisis. We understand as criminal defense attorneys how crucial it is for our attorneys and staff to remain available 24 hours a day, seven days a week to provide legal services for clients in need.

Your pursuit of justice starts here!

Speak to an attorney 24 hours a day free consultations

Email Us & Get Help
Today

The estate and gift tax exemptions are going up. What does it mean?

| Dec 21, 2012 | Heirs & Beneficiaries

As we all know, the federal government levies taxes on large estates, which are sometimes called “death taxes” by those who would prefer it did not. The gift tax is related, because giving assets to family members before death was often used as a way to reduce the value of an estate and avoid taxation. To prevent that, the gift tax was devised.

Many people misunderstand the gift tax. It is not a tax on the recipient of the gift, but on the giver. The recipient may owe income taxes on the value of the gift, but it is the person doing the giving whom the tax is meant to reach. Additionally, the gift tax is not meant to prevent parents and grandparents from paying for school tuition or medical bills for their adult children. It also doesn’t apply to political gifts or those given to qualified charities.

Basically, federal gift and estate taxes work together to ensure that an individual’s assets above a certain, generous level, end up being taxed. There is an annual exemption each year, meaning that you don’t owe taxes on any gifts or bequests lower than that level. There is also a cumulative exemption for the total given or left to others over the course of a lifetime.

For 2012, the annual exemption for gifts and estate assets is $5 million per person, meaning that no estate or gift taxes are owed for gifts or bequests that total less than that. Once you reach the limit, the tax rate is 35 percent for both.

As things stand now, that rules will change on Jan. 1. Unless Congress takes action, the 2013 annual exemption will drop to only $1 million per person. Gifts and bequests above that amount will be taxed at 55 percent.

With the “fiscal cliff” negotiations dominating national attention, few policymakers have paid much attention to the changes in gift and estate tax law that will go into effect without congressional action.

People with large amounts of money to give to loved ones, however, should consider taking advantage of the high exemption amounts and lower tax rates this year.

Source: Forbes, “Give Now Or Pay Later: Rich Face Dilemma With Fate Of Estate And Gift Taxes Up In Air,” Roberton Williams, Dec. 17, 2012

  • Martindale-Hubbell | Top rated lawyer in Tampa | Richard Escobar | For Ethical Standards and Legal Ability | Martindale-Hubbell Top rated lawyer
  • Top Lawyers 2016 | Richard Escobar
  • Top Lawyers 2016 | Dino Michaels
  • Highest Possible Rating in Both Legal Ability & Ethical Standards | AV |AV Preeminent | Richard Escobar | 2016
  • Judicial Education | AV | AV Preeminent | Richard Escobar | 2016
  • CLIENT | DISTINCTION AWARD | Dino mike Michaels, Esq. | Recognized for Excellence | Quality of Service | Overall Value | Responsiveness | Communication Ability
  • 15 | YEAR | Anniversary | Proudly Serving | the Community | Since 2001 | Dino Mike Michaels
  • 10 Best 2018 | Richard Escobar | Client Satisfaction | American Institute Of Criminal Law Attorneys

Archives

Email Us & Get Help
Today

FindLaw Network