Posted by on Nov 30, 2012 in Creative Real Estate Strategies News | 0 comments

Beware of the Federal Estate Tax

Starting in 2013, if the Bush tax cuts are not extended, the federal estate tax exemtion will drop from approximately $5 million to $1 million and the tax rate will icrease from 35% to as high as 55%.

Even if the exemption is increased above the $1 million, it still could be devastating for ranchers and farmers who are land rich but cash poor.

I can’t emphasize enough the importance of proper estate planning to preserve property for your heirs. There are a number of legal opportunities to reduce the estate tax and for whatever tax liability may still exist, life insurance is a great way to pay the remaining tax liability using discounted dollars.

The important thing is to visit with competent advisors who can help diagnose the problems and recommend solutions. Good luck.

Leave a Reply

Your email address will not be published. Required fields are marked *