Planning For Life’s Greatest Need
Going through the estate planning process allows you to decide who is going to act if death or disability occurs and decide who gets your possessions. But, only if, this is done before there is a disability or death. An intestate probate is not the place that any person wants to find themselves in, which is what happens when their loved one couldn’t take the time to put their affairs in order.
The Lifetime Exemption For Federal Inheritance And Gift Tax
The lifetime exemption for federal gift taxes is a dollar amount you can give away without paying any tax. It's the giver, not the recipient, who must pay it. The Internal Revenue Code also provides for an annual exclusion, and some gifts are exempt from taxation, so they don't count against either the exemption or the exclusion.
The Tax Cuts and Jobs Act (TCJA) went into effect in January 2018 and it made a significant change to the estate and gift tax exemption, virtually doubling it to 11.14 million. The two taxes share the same exemption amount, and it's adjusted periodically to keep pace with the inflation. But it is important to note that this doubling of the exemption is temporary and is set to expire in 2025.
Why It's Time To Update Your Estate Plan
There are two widespread errors in estate planning. One error is not to have a will or other key elements of a plan. The other error is to fail to update the will and estate plan. Even if you have an estate plan, your work isn’t done. Estate plans need to be reviewed and revised from time to time. If your estate plan is three or more years old, you should give our office a call to discuss any changes that might require an update to your will or trust. In addition, an estate plan should be reviewed when specific events occur in your life as these events or changes in circumstances often create a need to update the plan. Here’s a list of the most likely events that should cause you to contact our office.
What Do We Do When a Loved One Dies?
When a loved one dies, the emotional response can be overwhelming. Paperwork and details are the last thing people want to think of - well, most people. There are all the choices to be made around the person. Burial or cremation? What kind of service should we have? Who gets invited? These decisions come fast and furious. Then just when you think you have gotten past the most important part comes the realization that winding up a person’s life is not simple, especially if they haven’t updated their estate plan in a long time or worse – don’t have one. In my opinion, one of the most loving things you can do for your family members is to have a an estate plan in place during your lifetime and update it every 3-5 years.
Please contact us for a free initial consultation. Experienced representation is just a phone call or email away.
A Personal Note
From Our Team
Enclosed please find our inaugural newsletter, which we plan to provide at least quarterly. Each newsletter will cover topics that we hope will be of interest to you that touch upon our practice areas: Business law, Estate Planning, International Estate Planning and Business Law, Probate and Real Estate. The articles are designed to be informative, but short and sweet, and this one has a strong tax focus.
I’d like to introduce Kahri Thompson, who has joined the firm as the Office Administrator and Legal Assistant. She is a recent
U of A graduate. But as she is originally from New Mexico, I can’t fault her. She doesn’t understand the ASU v. UofA rivalry.
Should the newsletter prompt you with any questions, we are just a phone call or email away. And, if you have any suggestions for topics, you’d like us to touch upon, please let us know.
With very best wishes,
Margaret and the team at
Tritch Buonocore Law
The History Of Corporate Income Tax In The US
The creation of the federal corporate income tax occurred in 1909, when the uniform rate was 1% for all business income above $5,000. Since then the rate has increased to as high as 52.8% in 1969. On Jan. 1, 2018 the corporate tax rate was changed from a decades-long tiered structure which staggered corporate tax rates based on a company's income to what is now a flat rate of 21% for all companies.
A Brief History
Year & Max Tax Rate
1936 - 15%
1940 - 24%
1950 - 38%
1965 - 48%
1968 - 52.8%
1970 - 49.2%
1971 - 48%
1979 - 46%
1987 - 40%
1988 - 34%
1993 - 35%
2018 - 21%