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Don’t Die in 2013

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    Attorney Janet Pennisi on the future of estate taxes if the country falls off the fiscal cliff.

  • Duration 4:36
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-- now attention all estate planners you'll clients think the death tax is going to be particularly vicious stopping January the first.

I want to vote walk up people doing now to keep that money in that the family joined the company is -- state planning that Tony that again that might -- Family its earnings that are you on a state.

-- -- -- -- -- -- We just put something up on the screen that 55%.

We think that's going to be the top tax on the State's next year probably don't know that do.

We don't know anything about what's -- actually do not know when that -- -- what the threat is three million is one million.

What is it well it now one does anything to click so to speak it will be a million dollars is the threshold exclusion.

You know and the exclusion is from a 55%.

Tax rates on hold on a second if we go over the cliff.

-- if you have an estate valued at more than a million dollars and you pass away.

Everything over a million is taxed at 55 that -- cracked 55%.

After actively if from the state of two million dollars.

And I pass away.

My state is tax 550000.

Dollars comes right out.

Well that's why it's a cut due and pay no one like -- flats on the ground that it -- well.

What are you doing to plan for -- out nobody really believes that that's gonna last for more than a minute.

If if it was the devastation would be across the board and quite frankly it would hurt the middle people the worst.

You know it gets back of that whole question of -- a huge difference teaching a millionaire and -- billionaire the person has and a state of two million dollars east hello holy.

Vulnerable to what's going on in congress right now front -- not watching the news not paying that much attention because they don't feel that impact them.

You know the theory right over you telling -- -- what what they come to you got a million dollars and help me out here on depends on who they are and their family -- -- including their age.

Their spouse's age their children's HQ children's like circumstance -- -- remembered you're talking about.

Tax planning is right now tax yes saying yeah you can't think yes -- got a -- using an intelligent and -- you telling them.

Watch out watch out because it's possible but anything over a million will you'll lose 55% and are you telling them I tell them my personal opinion -- yes it unguarded.

Does look my personal opinion is it's not going to be a 1000055.

That's my personal opinion and I think people who jumped the gun.

Who -- European -- -- looking at get what is it undoubtedly say what is it going to be my sense was in the last time we had this discussion for the 2010 along remember I remember I said 3.5 because that's what made sense from economists that's what made sense from the IRS.

Doing analyses on tax returns that's what made sense they came -- -- five million.

So I was wrong but you don't do it isn't he was an illogical number -- -- there could be logical numbers applied again.

Is it true that you cannot put off for -- The estate tax you could plan around that you could delay it but you can't ever pulled it off.

Totally taxes for the most part our deferral issue you leave their paid taxes that the current rate because your bargaining against the future being a higher tax rate.

Or you kick the can down the road and you hope that you have a better tax situation all of our.

You've spent your money for instance people who are forty can't do the same tax planning as people who -- second okay.

Hold on second.

I passed away I pass along let's say ten million dollars to my children okay.

And -- do it into what I've been planning for it so there's no tax -- -- pass away the whole ten million goes to the kids.

But eventually they have to -- And that's it isn't it went to thank you Eric summit when will they will pay tax on things when they sell them and they sell when they die when they try to move things around -- -- -- -- it's basically get a card game that you're playing out for a long period time.

Which is why practitioners who are planning our kind of guessing now -- Under the give you commercial.

If I come to you you couldn't make sure that I if I got ten million will pass the entire ten million onto the case you can do that fall Harry -- that we can do what I had to do with health -- -- between the decisions that our business dividend tax to help -- they navigate -- one million navigation -- I -- because these are long term decisions for your family.

You know what makes a difference in business decisions and family decisions is one affects the people you -- I want to pass along my estate in.

To my head what's what's that you can't help me I could help you but with some parameters of not knowing what I'm actually accomplishing and you really do -- look at this that planning -- -- us Janet it was a pleasure thank you very much thank you.

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