Arizona Estate Planning Firm, Knollmiller and Aerenofsky, LLP offers advice for farmers regarding increase of estate tax.
In the July 9, 2012, edition of USA Today there is an article sounding the alarm for farmers with regard to the estate tax (see USA Today, Farmers, beware: Estate taxes could rise sharply in the “Money” Section.) The article states that the estate tax is set to affect estates at 1 million or more starting the first of next year, 2013. While opponents of the tax have used the family farms and family businesses to galvanize opposition to the estate tax, the article is accurate in that the tax is set to adjust downward come January 1, 2013. Currently, the exemption limit is about 5.2 million before a tax is imposed.
As Certified Tax Specialist, James Knollmiller, advises:
“In my practice, I am asked frequently about the status of the estate tax and what Congress will do. The bottom-line, and only answer, is we have no idea. Congress certainly doesn’t. We do expect Congress to take some action. They may even act well into 2012 and make the law retroactive to January 1. This has occurred frequently in tax legislation.”
James continues by offering his advice to farmers and their families regarding the estate tax increase:
“My advice to clients is to plan for the uncertainty. Put default provisions in an estate plan that provides maximum flexibility. Reserve the power to amend and occasionally check with your estate planning attorney on where the law currently stands and if there have been any changes.”
About Knollmiller and Arenofsky
Knollmiller and Arenofsky is a Trust and Estate Planning firm located in Mesa, AZ which has been serving the area for over 30 years. James Knollmiller is a Certified Tax Specialist with over 40 years of experience in estate planning. The firm offers a full range of estate planning services. To learn more, please visit: http://www.aboutestateplanning.com
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