We have discussed the 2012 tax-saving opportunity quite a bit here lately. You can read previous posts here and here. This article continues our conversation by providing our clients and readers a number of factors to consider when deciding whether to gift or not to gift.

For those who are just “tuning in” to the discussion, the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (“the Act”), significantly alters the federal estate and gift tax system, which impacts estate planning for many individuals and presents excellent estate planning opportunities. Namely, an individual can give away more than $5,000,000 of their assets now and remove those assets and any appreciation in their value from their future taxable estate. For married couples, this amount jumps to more than $10,000,000.

Needless to say, the Act has sparked quite a few questions for our clients. We are hearing ...

        If you are like me, you remember exactly where you were the moment you found out that Obamacare had been upheld by the Supreme Court.  No matter your party or political persuasion, and regardless of whether you celebrated or groaned at the news, the vast majority of Americans were consciously awaiting this decision. But do you know exactly what this law means for you as a Taxpayer?  If not, you should keep reading…

        Here is what to expect next year, in 2013:

• Medicare taxes increase for upper-income earners. A surtax of 0.9% for single individuals with more than $200,000 in wages and couples earning over $250,000. The surtax is on the employee’s share of payroll taxes. The surtax hits the self-employed as well.

• Unearned income is subject to a 3.8% Medicare surtax for single individuals with a modified adjusted gross income (“AGI”) in excess of $200,000 and ...

The U.S. Chamber Institute for Legal Reform has ranked Florida among the 10 worst states for lawsuits. The biggest concern is the huge damage awards by Florida juries. The Institute's conclusions provide ample reason to engage in asset protection planning. Remember asset protection planning works best when it is implemented before it is needed.

Here's a copy of the press release from the Institute and a short video from the Institute's president.

Florida’s Lawsuit Climate Among Worst in the Nation

Legislation in effect until December 31, 2012 makes the present a particularly important time for tax planning. In late 2010, Congress passed and the President signed into law the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010 (the “Act”). The Act provides a two-year reprieve from higher tax rates and lower credit amounts that are typically characteristic of wealth transfer taxes, such as the estate tax, the gift tax and the generation skipping transfer tax.

The Act mandated a lifetime gift tax credit of $5,000,000 and a maximum rate of gift tax of 35 percent. (The credit for 2012 is $5,120,000 as it is indexed for inflation.)  Be careful not to dismiss this opportunity because you say to yourself, ‘I don’t have $5,000,000, or anywhere close to it;’ you will have missed the proverbial boat. Absent further action by Congress, the lifetime gift tax credit will return to $1,000,000 on January 1, 2013, and the maximum rate will jump to 55 percent. As is obvious, 2011 ...

Recently, The Coleman Law Firm was privileged to be a sponsor of the 10^th Annual Angelwood Fashion Show and Luncheon, a wonderful event that raises funds for programs supporting children and adults with Autism, Cerebral Palsy, Down’s syndrome, Spina Bifida and intellectual disabilities. The event not only served to benefit a very worthy cause, it was a reminder of the fragility of life and the importance of special needs planning.

Special needs planning is an area of law that takes on many shapes and forms. This is because the number of diseases and tragedies that can, at any given moment, affect us and our loved ones are countless. Autism affects 1 in 88 children – 1 in 54 boys. (That’s a 10-fold increase in prevalence in 40 years.)  Autism affects over 2 million individuals in ...

On September 11, 2012, The Diamond Group (an investment firm) is hosting a dinner meeting for members and prospective members of the Duval County Medical Society. Arni Diamond, the principal for The Diamond Group has invited me to speak on the topic of asset protection for doctors.

My topics for the evening will be: "Six Things Every Physician Should Know About Estate Planning" and "The 10 Biggest Mistakes Physicians Make Protecting Their Assets."

Mr. Diamond will also present information regarding "Myths of the Stock Market" and "Endowment Style Investing."

The program begins at 6:30 p.m. at the Corner Bistro, 9823-1 Tapestry Park Circle, Jacksonville, FL 32246. Dinner will follow the presentation.

If you are a physician and would like to attend, please RSVP to Amber Baker in our office at (904) 448-1969, or by email to ABaker@TheColemanLawFirm.net. Seating is limited so please RSVP as soon as reasonably possible.

What happens when a company loses its top salesperson to a tragic accident?  Imagine that the salesperson drove 40 percent of the company’s million-dollar-a-month revenue. Can the remaining, less experienced sales staff compensate for the loss?  Do the employees stick around if they have to take a temporary (but indefinite) cut in pay?  Can the owners find someone to replace their star salesperson?

Consider what might become of a valuable, two-owner company when one owner dies?  The remaining owner probably wants to purchase the shares from her former partner’s family, but does not have sufficient funds set aside. If the business value is not too high, the owner might be able to secure a loan to acquire the shares. What if the business is relatively new and is not yet creditworthy?  What if the operation fizzles out without the shareholder’s leadership and the surviving owner is left with a personal guarantee on a loan that she cannot pay?

Now that the health care law has been declared constitutional, the remaining provisions will be going into effect. One little known provision is a new 3.8% investment income surtax, also called the health care surtax or the Medicare tax; it will go into effect on January 1, 2013. [1]

This new surtax will be assessed on the lesser of a) net investment income or b) the excess of modified adjusted gross income (MAGI) over the “threshold amount.” For married taxpayers filing jointly, the threshold amount is $250,000; married filing separately, $125,000; all other individual taxpayers, $200,000. For trusts and estates, it is the beginning of the top income tax bracket ($11,650 in 2012).

Stated another way: 1) If your modified adjusted gross income (MAGI) is less than or equal to the threshold amount that applies to you, you ...

We're co-sponsoring a free lunch and learn seminar on July 31, 2012 to talk about Elder law issues affecting Florida's seniors and the elderly.

Why the information you will learn at this seminar will be important to you: 

    1.   You will learn how to pay for long term care - either at home, in an assisted living facility, or skilled nursing home.
    2.   You will learn about Medicaid benefits for nursing home care, and how to qualify for those benefits, legally, without turning over all of your assets to the nursing home or the State of Florida.
    3.   You will learn about one of the most little known but significant benefits available to millions of veterans and their spouses to provide support for at home care, assisted living care, and even skilled nursing home care.
    4.   You'll also learn how to avoid probate and the costs and time associated with probate.

We’d like to offer you a free lunch and learn seminar!