
James F. McDonough
Of Counsel
732-568-8360 jmcdonough@sh-law.comFirm Insights
Author: James F. McDonough
Date: January 9, 2013

Of Counsel
732-568-8360 jmcdonough@sh-law.comWith 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.
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.

Smart contracts feature a unique blend of legal agreement and technical code. This innovation has the potential to reshape how business is conducted. At the same time, smart contract legal issues around enforceability, jurisdiction, identity, and compliance are common. The legal framework for these self-executing agreements is still evolving. What Are Smart Contracts? Smart contracts, […]
Author: Bryce S. Robins

Retaining top talent continues to be one of the greatest challenges facing employers today. Even in an employer’s market, the loss of a key employee can disrupt operations and result in significant costs. While compensation plays a role, long-term retention often depends on workplace culture, communication, and employee engagement. One increasingly popular strategy for improving […]
Author: Angela A. Turiano

Secured transactions form the backbone of a wide range of business dealings, including business loans, mortgages, and inventory financing. Because the stakes are often high and relatively minor oversights can have drastic consequences, lenders and borrowers should thoroughly understand how to form an enforceable security agreement that protects their legal rights. What Is a Secured […]
Author: Dan Brecher

Cashing a check marked “paid in full” can be a risky endeavor, particularly if you don’t fully understanding the legal implications. If you are owed more than the amount of the check you accept and deposit, you may waive your right to collect the full disputed amount. That is why you should consider either rejecting […]
Author: Dan Brecher

The One Big Beautiful Bill Act of 2025 (OBBBA) significantly impacts federal taxes, credits, and deductions. A key change relating to Qualified Small Business Stock (QSBS) allows greater tax-free gains for investments in startups and other qualifying small businesses. Company founders and other investors should understand how the enhanced tax strategy works or risk missing […]
Author: Dan Brecher

Corporate consolidation involves two or more businesses merging to become a single larger entity. The result is often a stronger and more competitive company that can better navigate today’s competitive marketplace. What Is Corporate Consolidation? Corporate consolidation closely resembles a basic merger transaction. The primary difference is that a consolidation creates an entirely new business […]
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.
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.
Let`s get in touch!
Sign up to get the latest from the Scarinci Hollenbeck, LLC attorneys!