According to Morgan Law Group 1 in 8 U.S. Households Could Owe Estate Tax in 2013
LIMRA, the worldwide association of insurance and financial services companies, has just released a report that finds approximately 14.7 million U.S. households - one in eight - face a potential estate tax liability if the estate tax law reverts back as planned to 2001 levels at the end of this year.
- Orange County, CA (1888PressRelease) October 26, 2012 - The LIMRA report said that Congress would likely consider three different proposals for the estate tax when it reconvenes following the November elections:
• Allowing the estate tax to revert back to 2001 levels of $1 million and 55% maximum tax;
• Extending the current estate tax exemption of $5 million and a 35% maximum tax;
• Enacting a compromise of $3.5 million exemption and 45% maximum tax rate.
LIMRA estimated that if the estate tax were to revert back to 2001 levels, the average tax due for the 14.7 million U.S. households at death would be $1.4 million.
If the current law is extended, LIMRA estimates 2.4 million households would have an average potential estate tax liability of $2.4 million.
If the compromise passes, LIMRA says that 3.6 million households would have an average potential estate tax liability of $2.6 million.
The good news, Darlynn Morgan of Morgan Law Group says, is the estate or "death tax" is entirely voluntary and there are steps you can take right now to minimize your exposure.
What this means for the average person is that if you have over $1,000,000 in assets (including life insurance, the value of your home, business, brokerage accounts and retirement accounts), you should seek estate planning services before the end of the year to protect yourself.
If you are concerned your family is one that could be affected or would like more information on upcoming changes to the estate tax laws please visit www.morganlawgroup.com or call (949) 260-1400.
ABOUT DARLYNN MORGAN - California Probate Attorney
OC Trusts Lawyer Darlynn Morgan and Morgan Law Group is a Southern California Probate Attorney / Estate Planning Lawyer / Wills & Living Trusts Law Firm Serving: Los Angeles, Orange County, Riverside, San Bernardino, San Diego & all of Southern California
Probate law firm Morgan Law Group, serves all cities in Orange County, including: Aliso Viejo, Anaheim, Balboa Island, Brea, Buena Park, Capistrano Beach, Corona Del Mar, Costa Mesa, Coto de Caza, Cypress, Dana Point, as well as estate planning in Foothill Ranch, Fountain Valley, Fullerton, Garden Grove, Huntington Beach, Irvine, La Habra, Laguna Beach, Laguna Hills, Laguna Niguel, Laguna Woods, Lake Forest, and estate planning and probate in Los Alamitos, Mission Viejo, Newport Beach, and estate planning and probate law firm information in Orange, OC, Placentia, Rancho San Margarita, Rossmoor, San Clemente, Santa Ana, Seal Beach, Sunset Beach, Tustin, Villa Park, Westminster, and Yorba Linda. Orange County California probate law firm Morgan Law Group, serves all counties in southern California. For more information about Estate Planning Lawyer Darlynn Morgan, call: 949.260.1400 or visit www.MorganLawGroup.com