As uncertainty continues its grip on the estate planning landscape, here is some practical advice on what you can do before the end of the year to lessen the sting of anticipated tax increases in 2013:
Take income now. Deferring income used to be a given, but since tax rates will likely increase after Jan. 1, 2013, many tax experts are suggesting you receive bonuses and other income before the end of 2012 to save on taxes.
Take capital gains now. Taxes on capital gains are expected to rise next year, so you may want to sell appreciated real estate or stock this year.
Think about a dynasty trust. A dynasty trust preserves principal while delaying the payment of estate taxes for future generations, giving them more time to plan and helping preserve your principal now and protecting it against creditors.
Think about a charitable remainder trust. By contributing appreciated assets to a charitable remainder trust this year, you avoid capital gains tax and still provide an income stream for you and your beneficiaries.
The Flanigan Law Group provides Southern California residents with personal attention for estate planning, administration and litigation legal services. When disputes between families, arise, they are very successful in resolving legal estate issues quickly and efficiently while preserving financial and emotional resources. Contact the Flanigan Law Group at 949-450-0042.