Posted: 04.06.2011
Tax Act - President Significantly Changes Federal Estate Tax Law

On December 17, 2010, President Obama signed the Tax Relief Act of 2010 (the "Act"). The Act significantly changes the federal estate tax, which impacts estate planning for many of our clients and presents significant estate planning opportunities. Below is a summary of the Act's key changes:

The Act provides for an estate tax and gift tax exemption of $5 million per person ($10 million for couples), with a top tax rate of 35% for decendents dying in 2011 and 2012 (or for gifts made in 2011 and 2012). Unfortunatly, this new regime is temporary and will sunset on December 31, 2012. Unless there is further Congressional action, as of January 1, 2013, the prior estate and gift tax regime will apply, and this reflects a 55% maximum rate and a $1 million exemption.

The Act also provides for "portability" between spouses of the estate tax exemption for estates of decedents dying in 2011 and 2012, where both spouses pass away prior to 2013. Generally, portability allows a surviving spouse to elect to take advantage of the unused portion of the estate tax exemption of his or her predeceased spouses, thereby providing the surviving spouse with up to $10 million of estate exemption. Special limits apply to decedents with multiple predeceased spouses.

For gifts made in 2011 and 2012, the Act limits the maximum gift tax rate to 35% and increases the gift tax exemption amount ("gift exemption") to $5 million. As discussed below, this change provides an opportunity to move significant amounts of wealth free of estate and gift taxes. Donors continue to be able to use the annual gift tax exclusion before having to use any part of their gift exemption. For 2011, the annual exclusion amount is $13,000 per donee (married couples may continue to "split" their gift and may make combined gifts of $26,000 per donee).

The Act provides a $5 million GST exemption amount (""GST" exemption") for 2010 (equal to the estate tax exemption) with a GST tax rate of 35% for 2011 and 2012. The Act also extends certain technical privisions under prior law affecting the GST tax.

Julius H. Giarmarco, Esq.
Giarmarco, Mullins & Horton, P.C.

Posted: 04.01.2013
Save Health Care Costs BY OFFERING AN ON-SITE PRIMARY CARE CLINIC...

Posted: 04.01.2013
Insurance Costs Rising Across Many Categories...

Posted: 04.01.2013
BE PROACTIVE TO PREVENT WORKPLACE VIOLENCE...

Posted: 04.01.2013
401(k) Fiduciaries: Is Your Plan Putting You At Risk?...

Posted: 04.01.2013
DOL Delays “Notice of Coverage Available Through the Exchanges” Requirement for Employers...

Posted: 12.18.2012
Save money on your retiree health insurance with an EGWP...

Posted: 12.18.2012
Protect Yourself with EFT Fraud Coverage...

Posted: 12.18.2012
How to Use Individual Driver Motor Vehicle Records to Manage Risk...

Posted: 12.18.2012
Great News!...

Posted: 09.04.2012
Major Trends Driving Need for LTC as an Employee Benefit...

Posted: 09.04.2012
The decision has been announced....

Posted: 09.04.2012
Credit Insurance...

Posted: 09.04.2012
Why borrowing from your 401(k) may not be in your best interest...

Posted: 06.19.2012
Changes in Worker’s Comp Calculations Will Cost You $1,000’s of Dollars...

Posted: 06.19.2012
Not all Marine Vessels (or Insurance Policies) are Created Equal...

Posted: 06.19.2012
How Effective is Your Wellness Education?...

Posted: 06.18.2012
Supreme Court Hears Affordable Care Act Arguments...

Posted: 03.23.2012
Retirement Planning Tips for 2012...

Posted: 03.21.2012
Do You Know the Six Factors Affecting Your Property Insurance?...

Posted: 03.21.2012
Rebating Health Insurance Premiums to Employees...

Posted: 12.30.2011
Secure Your Assets with a Micro Captive...

Posted: 12.30.2011
Texting While Driving...

Posted: 12.30.2011
Helping Employees Bridge the Gap with Accident Insurance...

Posted: 10.04.2011
Disease Management...

Posted: 10.04.2011
What is your Cyber Risk?...

Posted: 10.04.2011
Control Workers Comp Costs...

Posted: 10.04.2011
Steps to Filing a Flood Claim...

Posted: 10.04.2011
Should I Invest in a Roth 401(k) or a Traditional 401(k)?...

Posted: 07.05.2011
The Sky Really Can Fall...

Posted: 07.05.2011
Directors & Officers Liability Insurance...

Posted: 07.05.2011
Health Care Reform...

Posted: 07.05.2011
For Your Information...

Posted: 04.06.2011
Repealing Health Care Reform...

Posted: 04.06.2011
Help Your Employees Comply with New Over the Counter Rules...

Posted: 04.05.2011
Solving the Myster Behind Equipment Breakdown Coverage...

Posted: 12.20.2010
"Everything you need to know" about Grandfathering your Health Plan...

Posted: 12.20.2010
The Importance of Employee Benefit Liability & Fiduciary Liability Due to Health Care Reform...

Posted: 12.20.2010
IRS Delays: W-2 Health Cost Reporting Requirement...

Posted: 12.20.2010
Preventive Care Coverage for Adults & Children...

Posted: 12.20.2010
Brown & Brown of Detroit is honored for the third time...

Posted: 10.05.2010
Understanding Fiduciary Liability and why ERISA bonds are not enough...

Posted: 10.05.2010
Affordable Care Act - Sept. 23rd...

Posted: 10.05.2010
Renting a Car? Make Smart Choices Before You Visit the Rental Counter...

Posted: 06.21.2010
Health Care Reform - Are You Ready?...

Posted: 06.21.2010
Michigan Catastrophic Claims Association Assessment Increases...

Posted: 06.17.2010
Health Care Reform Time Line...

Posted: 06.17.2010
For Lease Property Vacancy...

Posted: 03.22.2010
Wellness Incentives - How They Work Through Encouragement and Reward...

Posted: 03.22.2010
Tuition Insurance Program Keeps Students in School “While Protecting School’s Cash Flow”...

Posted: 03.22.2010
Estate Tax Changes: What does it mean?...

Posted: 03.22.2010
When is Flood Insurance Needed? ...

Posted: 03.22.2010
HIPAA Breach Notification Requirements...

Posted: 02.10.2009
ALCOS Transitions Name to Brown & Brown of Detroit...

Posted: 11.06.2008
Food Drive to Replenish Gleaners Community Food Bank Supplies...

Posted: 10.31.2008
Leading Detroit-area Insurance Firm Celebrates Golden Anniversary...

Posted: 03.17.2008
ALCOS Celebrates 50 Years of Serving Our Community...

Posted: 11.15.2007
Crain’s Detroit Business ranks ALCOS as the 6th largest Business Insurance agency in Michigan for the year....

Posted: 04.17.2007
What You Need to Know About Our Acquisition...

Posted: 10.27.2006
ALCOS ACCOLADES...

Posted: 08.29.2005
Crain's Detroit Business name ALCOS a Cool Place To Work...

Posted: 06.15.2005
Team ALCOS Retains ACS Trophy...

Posted: 03.16.2005
ADVISOR Wins National Recognition...

Posted: 10.08.2004
Mundus & Mundus of Ann Arbor merges with ALCOS...

Posted: 10.07.2004
ALCOS is chosen as a Future 50 of Greater Detroit winner for 2004...

Posted: 10.06.2004
ALCOS is Top Corporate Contributor at the Relay for Life...