Bucks Blog: Settling Questions About Taxes

In his Wealth Matters column this week, Paul Sullivan writes about the bill passed by Congress that permanently sets the estate and gift tax exemptions at $5 million. The action ends more than a decade of flux for the estate tax and, with it, more than a decade of uncertainty among the wealthy on how best to set up their finances to benefit heirs.

While most of us do not have to worry about either the estate or gift taxes, since our savings fall far short of the limits, the bill did resolve other tax issues, including setting new tax rates and permanently indexing the alternative minimum tax for inflation. While it is true that the changes mean we will probably be paying higher taxes this year, at least the worries about potentially larger increases are over.

Or do you disagree? Tell us your thoughts about the new tax legislation below.

Article source: http://bucks.blogs.nytimes.com/2013/01/04/settling-questions-about-taxes/?partner=rss&emc=rss