Wright Abshire, Attorneys, A Professional Corporation
Houston: 713-660-9595
The Woodlands: 936-273-2773
Fayette County: 979-278-4095

Pending estate tax changes leads many to gift early

Anticipated changes to the federal tax code that will affect estates and gifts have many Texas residents hurrying to make an end of the year deadline. Without any further action, tax rates for inheritances and for gifts will go up. The current law allows for no taxes to be taken out of gifts or inheritances of up to $5.12 million. For any amount given to a single person above that amount, the remainder is taxed at 35 percent. For many Texas residents and financial planners around the country, the high exemption amount means that many people have been able to pass assets to their children, grandchildren, friends, and charities without too much concern over the tax implications.

However, this will all change on January 1st, when the possible exemption will go down to just $1 million. This may seem like a lot of money to most readers, but it's important to take into account the value of the family home, retirement accounts, life insurance policies, and other similar assets. The value of those types of assets can add up quickly, particularly in a recovering stock market. Any amount that is given to one person or party that is over $1 million will be taxed at the high rate of 55 percent.

Congress still has the opportunity to act to change the law, but many experts believe that the result will rest largely on the outcome of the upcoming election. That lack of certainty has led many to start making gifts this year to take advantage of the current tax rate. Some estate planning attorneys have told reporters that they have experienced a "frenzy" of requests to take advantage of the tax rate in the face of the uncertainty.

Source: Associated Press, "Coming changes in estate, gift taxes stir 'frenzy,'" Dave Carpenter, Oct. 24, 2012.

More information on estate planning and tax planning for Texas residents is available on our website.

No Comments

Leave a comment
Comment Information

We Believe in Client Satisfaction Here is what our clients say about our hands-on approach to elder law and estate planning.

  • Thank you for your caring expression of sympathy. But more importantly, I want you to know how much your warmth as human beings has been palpably present in all the social and business intercourse we have experienced with you. Your willingness to allow yourselves to be completely human as you ply your trade adds a dimension to your professional stature which is unparalleled by most of your profession. Please don't change. You stand head and shoulders above the crowd. - L.T
  • Everyone in the firm was extremely cordial, courteous and professional, which made our family feel at ease knowing that our needs would be expertly managed. - R.L.
  • Everyone I came in contact with were kind and helpful. They were so professional as well as personable. I loved them. - J.B.
  • Very helpful in a family time of need. Excellent staff and service. After dealing with the State I have no idea how anyone could take this journey without the law firm's services. - L.N.
  • The firm did all things especially well. I was always impressed by the competent manner in which everyone worked and was confident that it would be "mission accomplished..." – J.T.
  • No detail was overlooked. Everything went very well. We feel so fortunate that your firm is well informed, capable and willing to do so much for us. I can't thank you enough for everything! - N.C.
Learn More
Email Us for a Response

Have a question about elder law in Texas? We can help. Schedule A Consultation Now

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

"The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form."

Contact Our Texas Elder Law Attorneys Today We have 3 locations to better serve you. Contact our office closest to you.

Bellaire Office
4949 Bissonnet Street
Bellaire, TX 77401

Phone: 713-660-9595
Fax: 713-660-8889
Bellaire Law Office Map

Bellaire Office

The Woodlands Office
3117 College Park Drive, Suite 240
The Woodlands, TX 77384

Phone: 936-273-2773
Fax: 713-660-8889
The Woodlands Law Office Map

The Woodlands Office

Carmine Office
1055 Deer Haven Road
Carmine, TX 78932

Phone: 979-278-4095
Fax: 713-660-8889
Carmine Law Office Map

Carmine Office
Back To Top