• Skip to primary navigation
  • Skip to main content

Armstrong, Fisch & Tutoli

Attorneys At Law

858-453-0626
  • ATTEND A FREE SEMINAR
    • In-Person Seminars
    • Online Seminars
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
  • Estate Planning
    • Business Owners & Asset Protection
    • Incapacity & Caregiver Support
    • IRA Inheritance Planning
    • Minor Children & Young Adult Planning
    • Outdated Estate Planning Documents
    • Powers of Attorney, Healthcare & Emergency Documents
    • Remarriage & Blended Families Protection
    • Special Needs Planning
    • Wills & Trusts
  • Estate Administration
    • Trust Administration
    • Probate
  • Elder Law
    • Are You A Caregiver?
    • Coping With Alzheimer’s
    • Emergency Medicaid & Nursing Home Planning
    • Hospice Care
    • Incapacity Planning
    • Medi-Cal & Elder Law Planning
    • Medicaid Planning
    • Options for Paying for Nursing Home Care
    • Veteran’s Benefits
  • Resources
    • Estate Planning Resources
      • Estate Planning Definitions
      • Estate Planning Reports
      • Estate Planning Checkup
      • Is Your Estate Plan Outdated?
      • Top 10 Estate and Legacy Planning Techniques
      • Incapacity Planning Definitions
    • Elder Law Resources
      • Elder Law Reports
      • Elder Law & Medi-Cal Definitions
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • How to Know if You Need Extra Help With Your Grieving
    • LGBTQ Resources
    • Special Needs Resources
    • Frequently Asked Questions
      • Estate Planning FAQs
      • Trust Administration & Probate FAQs
      • Legacy Wealth Planning FAQs
      • LGBTQ Estate Planning FAQs
      • Incapacity Planning FAQs
    • DocuBank
  • Reviews
    • Review Us
  • Videos
  • Blog
  • Contact Us
  • Show Search
Hide Search

Fiscal Cliff Fallout

Courtesy of Armstrong, Fisch, & Tutoli Attorneys at Law · February 8, 2013 ·

The question of whether or not the United States was going to fall over the “fiscal cliff” dominated the news in the weeks and days leading up to the new year. If we would have plunged over the cliff the estate tax parameters would have been quite dramatically affected.

The exclusion would have gone down from $5.12 million to $1 million, and the top rate of the tax would’ve shot up to 55%. The maximum rate was 35% in 2011 and 2012.

What the above means is that the portion of your estate that exceeded $1 million would have been subject to a 55% tax if no deal had been reached to change things as they stood throughout 2012.

Now that we have a deal in place we can breathe a sigh of relief to a certain extent. The estate tax exclusion is not going down to $1 million, and the maximum rate is not rising to 55%.

Under the terms of the budget compromise that was reached by lawmakers, the base estate tax exclusion is $5.250 million and will be adjusted annually for inflation. The maximum rate of the estate tax has risen from 35% to 40% rather than 55%.

While things certainly could have been quite a bit worse for people who have been able to accumulate significant financial resources, a 40% tax is certainly attention-getting.

Fortunately, there are steps that you can take to preserve your wealth. If you have assets that exceed the exclusion amount you would do well to discuss tax efficiency strategies with a licensed and experienced estate planning attorney sooner rather than later.

  • Author
  • Recent Posts
Courtesy of Armstrong, Fisch, & Tutoli Attorneys at Law
Latest posts by Courtesy of Armstrong, Fisch, & Tutoli Attorneys at Law (see all)
  • UNDERSTANDING YOUR 401(K): TRADITIONAL VS. ROTH - November 11, 2019
  • HOW TO ENSURE YOUR INSURANCE MONEY GOES TO THE INTENDED BENEFICIARY - November 11, 2019
  • THREE COMMON RETIREMENT INVESTMENT ERRORS - November 11, 2019

Armstrong, Fisch & Tutoli, Attorneys at Law

Armstrong, Fisch & Tutoli, Attorneys at Law

WHERE WE ARE

Armstrong, Fisch & Tutoli, Attorneys at Law
6050 Santo Road, Suite 240,
San Diego, CA 92124
Phone: 858-453-0626

Securities offered through Avantax Investment Services SM, Member FINRA, SIPC. Investment Advisory Services offered through Avantax Advisory Services SM. Placing business through Avantax Insurance Services SM. CA# 0D57837

OPENING HOURS

Monday9:00 AM - 5:00 PM
Tuesday9:00 AM - 5:00 PM
Wednesday9:00 AM - 5:00 PM
Thursday9:00 AM - 5:00 PM
FridayClosed

Map

Map
  • Facebook
  • LinkedIn
  • Twitter
  • YouTube

© 2023 American Academy of Estate Planning Attorneys, Inc. | Disclaimer | Privacy Policy | Disclosures