James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Fiscal Cliff Deal Has Various Estate Tax Implications
Author: James F. McDonough
Date: January 9, 2013
Key Contacts
Back
With the fiscal cliff avoided and new capital gains and estate tax laws implemented by the federal government, changes are abound for taxpayers in all earning ranges, though the wealthiest earners will see arguably the most substantial losses from the legislation passage.
Due to the passage of the American Taxpayer Relief Act (ATRA), high-net earners will see their dividends and capital gains taxes rise from 15 to 20 percent beginning this year. Moreover, while the law will keep the federal estate tax exemption at $5 million, the top tax rate of 35 percent will jump to 40 percent.
Though the estate tax is likely to affect many high-earners and business owners, a finance expert indicated ATRA will ultimately help the overwhelming majority of Americans.
“You could say this eliminates the estate tax for 99 percent of the population, though I’ve seen figures that say 99.7 or 99.8,” former Internal Revenue Service inspector Richard A. Behrendt told the New York Times.
He added that in terms of policy, the estate tax increase was implemented for a small segment of high-earning Americans – those inside the top 1 percent of earning nationwide. Trusts and other tax vehicles can also further reduce their liabilities.
One concern another finance expert, Carol G. Kroch, a managing director for wealth and philanthropic planning at Wilmington Trust, has regarding the passage of ATRA is that some high-net earners may avoid some financial planning ideas due to the tax law changes. However, she noted many of these individuals “can still create that pool of wealth” via trusts, despite the estate tax increase.
- Practices: Tax and Trusts & Estates, Estate & Trust Litigation, Real Property Tax Strategies
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Corporate Transactions: Best Practices for Successful Deals
Corporate transactions can have significant implications for a corporation and its stakeholders. For deals to be successful, companies must act strategically to maximize value and minimize risk. It is also important to fully understand the legal and financial ramifications of corporate transactions, both in the near and long term. Understanding Corporate Transactions The term “corporate […]
Author: Dan Brecher
How to Conduct a Fair and Legal Employee Termination in 2025
Ongoing economic uncertainty is forcing many companies to make tough decisions, which includes lowering staff levels. The legal landscape on both the state and federal level also continues to evolve, especially with significant changes to the priorities of the Equal Employment Opportunity Commission (“EEOC”) under the Trump Administration. Terminating an employee is one of the […]
Author: Angela A. Turiano
Admin Dissolution for Annual Report: What You Need to Know
While filing annual reports may seem like a nuisance, failing to do so can have significant ramifications. These include fines, reputational harm, and interruption of your business operations. In basic terms, “admin dissolution for annual report” means that a company is dissolved by the government. This happens because it failed to submit its annual report […]
Author: Dan Brecher
What Is Antitrust Litigation Law?
Antitrust laws are designed to ensure that businesses compete fairly. There are three federal antitrust laws that businesses must navigate. These include the Sherman Act, the Federal Trade Commission Act, and the Clayton Act. States also have their own antitrust regimes. These may vary from federal regulations. Understanding antitrust litigation helps businesses navigate these complex […]
Author: Robert E. Levy
Dissolving Your Business: Essential Legal Steps to Protect Your Interests
If you’re considering closing your business, it’s crucial to understand that simply shutting your doors does not end your legal obligations. Unless you formally dissolve your business, it continues to exist in the eyes of the law—leaving you exposed to ongoing liabilities such as taxes, compliance violations, and potential lawsuits. Dissolving a business can seem […]
Author: Christopher D. Warren
The Role of Corporate Restructuring in Mergers & Acquisitions
Contrary to what many people think, corporate restructuring isn’t all doom and gloom. Revamping a company’s organizational structure, corporate hierarchy, or operations procedures can help keep your business competitive. This is particularly true during challenging times. Corporate restructuring plays a critical role in modern business strategy. It helps companies adapt quickly to market changes. Following […]
Author: Dan Brecher
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.