Fiscal Cliff?

We have been getting a lot of questions into our office about how the impending 'Fiscal Cliff' may affect estate plans. The Fiscal Cliff would occur starting January 1, 2013 if Congress takes no action. Income taxes would increase, capital gains taxes would increase, estate tax and gift tax exemptions would sharply drop down, and much more.

The Fiscal Cliff may not be resolved by the end of this year, as negotiations have stalled and both sides have criticized the other. Perhaps a deal will be struck on December 31, 2012 at midnight. Who knows?

In terms of estate and gift taxes, most of our clients would not be immediately affected if there was a reversion to old tax rates. Besides, it is our opinion in this office that any fiscal cliff would be temporary. The political pressure on all parties and members of Congress to get something done would be too great to ignore. 

Keep checking this blog for more updates. Thanks!