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"Several years ago, upon the retirement of our former CPA, we interviewed several firms to replace those services. We chose Wilkins Miller because of their professionalism, depth of talent and friendliness. Because we have a retail business, a real estate business and estate planning issues to deal with too, we felt we needed a firm large enough to advise us on each of those areas. We have been very pleased, they respond when we need them and follow thru always. We have now given them our personal accounts also."

Jackie Greer
Autry Greer & Sons Inc.
& Greer Realty
 
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.