Protect Your Financial Legacy

In Recognition of these Staff Members upon earning CPA licenses this year.

Congratulations!

Rachel Moore, CPA

Liz Cooperman, CPA

Dylan Middleton, CPA

Lighting paths for more than 50 years

101 Plantation Chase St. Simons Island, GA 912.638.9031 www.schellhogan.com

Protect Your Financial Legacy

The federal estate tax has been on the endangered species list for several years, but several Congressional members in Washington are hoping to revive this rarely seen tax. Before you stop reading because you think “this tax only applies to the super wealthy,” consider (1) what is included in your taxable estate: bank accounts, securities, homes and other real estate, retirement accounts, life insurance, businesses, personal property, etc., and (2) an estate tax rate of 50%. To make sure your financial legacy transfers to your family and named beneficiaries instead of the government, consider the Estate Tax laws.

Federal Estate Tax Exemption Amount:

CURRENT LAW: The current federal estate tax exemption is $11.7 million; this amount will expire on December 31, 2025, and revert to $5 million, adjusted for inflation.

PROPOSED PLAN: Not many specifics are detailed, but indications are that the proposed estate tax exemption will be reduced to $3.5 million.

Stepped-up Income Tax Basis upon Death to an Individual:

CURRENT TAX LAW: For most assets, the income tax basis is adjusted or “stepped up” to the fair market value of that asset on the date of death. This permits the family and beneficiaries not to realize large capital gains upon the sale of the appreciated asset if sold shortly after death.

PROPOSED PLAN: Elimination of income tax basis adjustment, except for certain assets which may be stepped-up to $1,000,000.

Congressional proposals have been made to eliminate planning strategies long used to maximize what is passed to family members at death, but all – or 50% from estate tax –is not lost … yet! Prior to any tax law changes, opportunities are currently available to make or change plans. Consult with your attorney, CPA, and financial advisor to develop your plan this year and be ready to pull the trigger if or when the time comes.

L I G H T I N G P A T H S F O R M O R E T H A N 5 0 Y E A R S