February 25, 2012
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A topic no one really wants to think about. Death and taxes. There is good and not so good news. The good news is that you most likely have until December 31, 2012 to consummate your plan; the bad news is that unless the law changes a window of opportunity to avoid significant taxes may be closed and when it will open again is anyone's guess. This article will interest alarm company owners who are considering eventually transferring the business to children or family. Here's why you may need to act this year:
Currently, the top gift and estate tax rates are each 35%. There's also a unified gift and estate tax exemption of $5.12 million ($10.24 million for married couples). You can transfer up to the exemption amount ' through either lifetime gifts or bequests at death ' tax-free. Unless Congress passes new legislation, however, in 2013 the exemption will drop to $1 million ($2 million for married couples) and the top gift and estate tax rate will jump to 55%. You can wait until December to see if the law will be changing but you should be ready.
Succession planning is something most people don't want to think about. But planning can permit a transfer of a business of up to $10.24 million dollars, and you don't have to use all of the credit if the business isn't worth that much. [to find out what your alarm company is worth check out whatsmyalarmcompanyworth.com ] Making the transfer after January 1, 2013, either voluntarily or because of death, could have significant tax consequences. WIth the use of trusts and other estate planning devices the transition can be less painful.
Kirschenbaum & Kirschenbaum has established the Security Industry Acquisition Group and can assist you with your succession plan and estate planning as well. To reach our SIAG attorneys contact Jennifer Kirschenbaum, Esq at 516 747 6700 ext 302, email Jennifer@KirschenbaumEsq.com, or Dennis Stern, Esq at ext 323, email DStern@KirschenbaumEsq.com. Ask about sale of the business, transfer of ownership to family, trust Agreements and other corporate and estate planning issues.