+ ESTATE PLANNING UPDATE Spring 2013 David M. Knasel, Esq. Dominion Business Law PLC Tysons Corner | Leesburg, VA

+ Disclaimer Information presented is for general informational purposes only. It is not legal advice and should not be relied upon. Every situation is unique. Consult with an attorney for any specific case.

+ Estate Planning Basics Estate Planning = planning for what will happen in the event of your disability or death and putting in place the necessary legal instruments to accomplish your objectives. Basic Components: General (Financial) Power of Attorney Advance Medical Directive & Health Care POA Last Will Testament Revocable Living Trusts

+ Estate Tax Federal tax levied on assets that transfer upon your death Includes:  Personal Property  Real Estate  Investment and Retirement Accounts  Businesses  Life Insurance Proceeds

+ Also known as the… “Death Tax”

+ Estate Tax – THEN… Exemption: $5.14M Rate: 35% Includes “portability” Exemption: $1M Top Rate: 55% No “portability”

+ …AND NOW 2013 Exemption: $5.25M Rate: 40% “Portability”

+ “Permanent”? Before After

+ What does this mean?  Many fewer people will be subject to the federal estate tax, but…  State-Level Estate Tax  Non-Citizen Spouse  Many older estate plans may no longer be appropriate, or could be simplified

+ Estate Planning Still Necessary  Provide For and Protect Family  Charitable Legacy  Income Tax Planning (401k’s, IRA, etc.)  Disability Planning / Medical Decisions  Children with Special Needs

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