LOS ANGELES, CA / ACCESSWIRE / May 18, 2021 / Southern California estate planning firm, The Law Offices of Tony J. Tyre, Esq., APC, examines the new estate tax law changes and what people need to know moving forward.
As detailed recently on their website, estate taxes are being discussed much more these days with a possible upcoming change in the estate tax exemption. Estate tax, also known as “inheritance tax,” is a value-based tax, meaning your estate only pays estate tax if your estate is worth more than the estate tax exemption. Currently, the exemption is $11.7 million per person.
“Due to having this high exemption, estate planning attorneys have been able to draft more simplified living trusts than what we drafted when the limit was significantly lower,” said Attorney Tyre. “However, President Biden has proposed lowering the exemption from $11.7 million to $3.5 million. If you are married, then these amounts double since each spouse receives an exemption.”
If the new law takes effect, those with lower value estates will not need to worry about the change and there is hope that even if there is a change, the drop won’t be as dramatic as $3.5 million. However, if you are higher net worth, speak with an estate planning attorney to see what you can do ahead of a change.
It is important to note that even if someone is not high net worth, there are a myriad of items people should cross off their to-do list, such as drafting a living trust which directs the disposition of assets after death, as well as an advance healthcare directive and durable power of attorney, which apply while someone is living but incapacitated. Estate planning attorneys can help make something that is vital but sometimes overwhelming, a simple process. For more information, please visit www.tyrelawgroup.com.
About Tony J. Tyre, Law Offices of Tony J. Tyre, Esq., APC.
Tony J. Tyre is a highly respected estate planning attorney throughout California. He is a Certified Specialist in Estate Planning, Trust, and Probate Law by the State Bar of California Board of Legal Specialization. The Law Offices of Tony J. Tyre, Esq., APC is dedicated to fulfilling all of the estate planning drafting, probate, and trust administration needs of its clients. For more information, call (626) 858-9378, or visit http://www.tyrelawgroup.com. The law offices are located at 100 S Citrus Ave., Suite 101, Covina, CA 91723 and 5703 Temple City Blvd., Temple City, CA 91780.
SOURCE: Law Offices of Tony J. Tyre, Esq., APC