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I was hired at my organization the last month of a fiscal year and went straight into a financial audit. The patience, professionalism, and encouragement from the staff of Wilkins Miller made my transition to my new position easier. Their experience with our organization with prior audits gave me the guidance I needed, especially accounting standards unique to a non-profit organization. High standards in ethics and auditing and reporting to our board of directors by Wilkins Miller the past five years adds a level of confidence and trust for our stakeholders and community.

Christina Cooley
Alabama School of Mathematics and Science
 
2010 Tax Relief Act is set to expire on December 31, 2012

The 2010 Tax Relief Act unified the estate, gift & generation skipping tax exemption at $5,000,000 and set the tax rate at 35% for amounts over the exemption. The exemption amount has a built-in inflation adjustment and for 2012 the exemption is $5,120,000. The Act is set to expire on December 31, 2012 and return to the provisions provided by the Economic Growth and Tax Relief Act of 2001. Thus, absent new legislation, beginning in 2013 the estate, gift & generation skipping tax exemption will return to $1,000,000 and a maximum 55% tax rate.

Many Republicans favor permanent enactment of the $5,000,000 exemption and a 35 percent tax rate (if not total elimination of the estate tax), while the Obama administration favors a $3,500,000 exemption and a 45 percent tax rate after 2012, the same rates that applied in 2009. As a result, certainty in estate planning remains lacking.

As you can see, time is running short. The ability to make gifts of up to $5,120,000, without the payment of gift taxes, may not be available after 2012.

Please call our office as soon as possible if you would like to discuss how these issues may impact your current estate and gifting plans.