"Practically anyone who owns a house in Palo Alto, Los Altos, Portola Valley, Atherton, Woodside, or Menlo Park runs the risk of having estate taxes decimate their estate," says attorney Janet Brewer. "But with the right gift planning and other estate tax planning before December 31st, you can protect your assets and transfer more to loved ones."
(PRWEB) Palo Alto, CA – December 6, 2010 – Bay Area estate planning attorney Janet Brewer has published a "Year-End Tax Law Update for Bay Area Families". The brief helps individuals and families with assets over $3,500,000 to make decisions about non-charitable gift-giving before the end of this year.
"Despite the uncertainty that many of my clients feel as a result of the current federal estate tax situation, I encourage them to take affirmative steps rather than doing nothing," says Brewer, who is certified by the State Bar of California Board of Legal Specialization to provide legal service in estate planning, trusts, and probate law. "With the right gift planning and other estate tax planning, you can protect your assets and transfer more to your loved ones."
"If you give more than $1 million this year, the maximum gift tax rate is 35 percent," explains Brewer. "Next year it will jump up to 55 percent. Basically, 20 cents more on the dollar will go to Uncle Sam."
Beginning on January 1, 2011, an individual will only be able to pass along $1,000,000 ($2 million for couples) to his or her heirs free of estate taxes. If your estate is worth more than that, it will be subject to estate taxes of as much as 55%.
"If you live in Santa Clara County or surrounding areas, think carefully about your net worth," says Brewer. "Chances are, you don’t think of yourself as having a high net worth estate. That’s one of the curiosities that seems to come with living in Silicon Valley. And yet, practically anyone who owns a house in Palo Alto, Los Altos, Portola Valley, Atherton, Woodside, or Menlo Park runs the risk of having estate taxes decimate their estate."
There are likely to be changes in tax law on giving a family member a fractional share in a vacation house; on Grantor-Retained Annuity Trusts; and on intra-family loans, says Brewer.
For a real estate gift, families may need to arrange for an appraisal. In some cases, families may need an estate planning attorney to draft complex agreements that govern a gift. That takes time.
"Expert help does require an investment," says Brewer, "but it’s fair to say that with the right planning, the actions you take now could save you 25 percent of whatever amount you give over $1 million, compared to the effects after Dec. 31. So investing the time and money now could yield an excellent return."
Brewer's Year-End 2010 Tax Law Update for Bay Area Families -- which is available for download at calprobate.com/asset-protection-2010 -- is the latest in a series of guides. In August, Brewer published Picking Your Trustee in California: A Guide for High Net Worth Individuals. Another guide is due out in January. Those who opt in to Brewer's mailing list will get emails about new estate planning resources and asset protection tips as they come available.
About the Law Offices of Janet L. Brewer
Janet Brewer is a Palo Alto probate, trusts, and estate planning attorney with an advanced degree in tax law. She has practiced California estate planning, advanced gift-planning, and California probate law exclusively since 1991, and is Certified as a Specialist in Estate Planning and Probate Law by the California State Bar Board of Legal Specialization. Learn more at calprobate.com or call (650) 325-8276.