Transcript Estate Planning Update - Dominion Business Law PLC

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ESTATE PLANNING
UPDATE
Spring 2013
David M. Knasel, Esq.
Dominion Business Law PLC
Tysons Corner | Leesburg, VA
www.dominionbusinesslaw.com
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Disclaimer
 Information
presented is for general informational
purposes only.
 It
is not legal advice and should not be relied upon.
 Every
situation is unique.
 Consult
with an attorney for any specific case.
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Estate Planning Basics
Estate Planning = planning for what will happen in
the event of your disability or death and putting in
place the necessary legal instruments to accomplish
your objectives.
Basic Components:

General (Financial) Power of Attorney

Advance Medical Directive & Health Care POA

Last Will Testament

Revocable Living Trusts
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Estate Tax
Federal tax levied on assets that transfer upon your
death
Includes:

Personal Property

Real Estate

Investment and Retirement Accounts

Businesses

Life Insurance Proceeds
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Also known as the…
“Death Tax”
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Estate Tax – THEN…
2012
Exemption: $5.14M
Rate: 35%
Includes “portability”
2013
Exemption: $1M
Top Rate: 55%
No “portability”
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…AND NOW
2013
Exemption: $5.25M
Rate: 40%
“Portability”
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“Permanent”?
Before
After
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What does this mean?

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Many fewer people will be subject to the federal
estate tax, but…

State-Level Estate Tax

Non-Citizen Spouse
Many older estate plans may no longer be
appropriate, or could be simplified
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Estate Planning Still Necessary

Provide For and Protect Family

Charitable Legacy

Income Tax Planning (401k’s, IRA, etc.)

Disability Planning / Medical Decisions

Children with Special Needs
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