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"...Nine years ago, my firm switched from a national firm to Wilkins Miller to provide an audited financial statement for the company, prepare corporate income tax returns, and prepare two benefit plan audits. I can honestly say that the level of quality of service went up, the price went down, and the timeliness of the products improved. In addition to that, the people with whom we have worked at Wilkins Miller have been a pleasure to get to know, expressing a personal interest in me and my people, on a consistent basis..."

John R. Wilson, Jr.
Mobile Paint Manufacturing Company, Inc.
 
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.