Deering, Sands and Berberoglu

Tune-UP
Your Trust!

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joe
Joseph E. Deering

DEERING, SANDS & BERBEROGLU
725 Arizona Ave., Suite 200
Santa Monica, CA 90401
(310) 907-5715
(310) 453-1941 (firm)
Toll Free (888) 326-9789
www.joedeering.com
joe@lawdsb.com

NEW DEVELOPMENTS WITH THE ESTATE TAX IN 2013
  1. CHARITABLE CONTRIBUTION ROLLOVERS REOPENED
    The American Taxpayer Relief Act of 2012 reopened a benefit for charities. A taxpayer over 70½ years must make a mandatory taxable distribution of their IRA. A taxpayer may this year make a distribution up to $100,000.00 to a charity and avoid income tax on that distribution.

  2. ESTATE AND GIFT TAX UPDATES
    The basic federal estate-tax exclusion amount for estates of people who die in 2013 is $5,250,000, the Internal Revenue Service announced recently, up from $5,120,000 in 2012. This is up from $5,000,000 in 2010 because it is indexed for inflation.
    The federal gift and generation-skipping transfer tax exemption is the same as the estate-tax exclusion amount. The top federal estate-tax rate on the largest estates is now 40%, up from 35% in 2012. Transfers from one spouse to the other typically are tax-free.

  3. ESTATE TAX PORTABILITY STILL IS GOOD IN 2013
    Portability effectively makes the federal estate-tax exclusion amount "portable" between a husband and wife. When one spouse dies, the other typically can get the deceased spouse's unused exemption amount without having to set up trusts or other tax-saving maneuvers.
    This means that a married couple can truly give $10,000,000.00 of assets to their heirs regardless of who dies first and without having to engage in complicated estate planning such as making up complicated trusts to shelter the estate tax exemption in the trust of the first spouse to die. The only catch is that the surviving spouse has to file an estate tax return electing to uses this portability feature of the law. This will be especially helpful to families that have a retirement account as a large part of their estate, because putting such a fund in the old credit shelter trust causes many tax problems.

  4. HAVE US CHECK YOUR TRUST TO TAKE MAXIMUM ADVANTAGE OF THESE NEW LAWS.
    Even with the new increased exemption and “Portability” an “TUNED UP” trust is still critical in avoiding probate in California. In some cases trusts can be simplified and in other cases they should be modified to take full advantage of the new laws.