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East End Fiscal Cliff May Be the Expiring Estate Tax Law

Nobody in the press is really talking about this.

As quietly as a couple walking their dog along the edge of the ocean late at night, the Estate Tax change will arrive Tuesday, Jan 1.

It will have a huge effect on residents of the East End of Long Island for many reasons. First of all the exemption goes from $5 million to $1 million, basically meaning an estate that was less than $5 million paid zero tax. So most estate planning that was done is now obsolete, so you should call your estate planner, a job I did 10 years ago, but now have nothing to do with, but I felt the need to write this because it is a tax nightmare. This Wall Street Journal graph makes my point best.

Estate Size       Tax Burden for Survivors

$1 million          $0

$2 million          $0

$3 million          $0

$4 million          $0

$5 million          $0

$6 million          $308,000

$7 million          $658,000

$8 million          $1,008,000

$9 million          $1,358,000

$10 million         $1,708,000

 

2013

Estate Size       Tax Burden for Survivors

$1 million          $0

$2 million          $435,000

$3 million          $945,000

$4 million          $1,495,000

$5 million          $2,045,000

$6 million          $2,595,000

$7 million          $3,145,000

$8 million          $3,695,000

$9 million          $4,245,000

$10 million         $4,795,000

(Thanks to estate-planning law firm Mark S. Eghrari & Associates in Smithtown, N.Y., for crunching the numbers.)

So why is no one talking about it because quite frankly many properties on the East End may be valued over $5 million alone. When I spoke with Senator Gillibrand about this she said to me, one-on-one, that she was working in committee to get some sort excursion for farms in a new law, but there is no new law. If you are concerned about this issue perhaps you should contact Congressman Tim Bishop and Senator Chuck Schumer and Senator Kirsten Gillibrand. look at those numbers, ouch!!!!!

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forward thinking January 02, 2013 at 12:54 AM
have the gov't elected and "workers" (free choice ones) pony up 1/2 medical increase their tax rate. there is a message on the back of money its a pyramid (al - la ponzi). to ease our conscience we create social policies to support anyone. It would be far better if locally we “took care” of our own… because of the luck of the sperm or through hard work people who have more than others should not be excessively penalized. I support a flat tax rate – i.e. – 25% over one million , 20% over 500,000 and 15% over 120,000 and 10% for all others… no deductions
T.J. Clemente January 02, 2013 at 05:08 AM
BREAKING NEWS>>Ok the new law passed tonight has this provision about the Estate Tax for 2013 moving forward, FIRST $5 Million exempt (NO TAX) all money over $5 Million taxed at 40 %. It's official.
T.J. Clemente January 02, 2013 at 05:12 AM
UPDATE OF BREAKING NEWS ON THE ESTATE TAX FOR 2013 Under the agreement, U.S. estate tax law will provide a $5.12 million per-person exemption. The deal raises the highest tax rate from 35 to 40 percent but continues the current policy of reunifying the estate and gift taxes. All other current policies related to the estate tax will also remain in place. This permanent not a year to year deal!!!!!
Rick Hoyt January 02, 2013 at 11:53 AM
Joe Biden is doing his victory lap, I Blame "Boner" Just as much, There Are NO Deductions, Except for BIG Business as Usual, Senate passes the Thing in the Middle of The Night, the Feckless "Boner" Shafts Us Again, No one even reads it, same M.O. as The "Hellthcare ill".Where's the Transparency ? The Only winners the Republicrats-Cartel and BIG Business as Usual.The Debt Ceiling will be Increased,QE4, More Fiat $ being printed.Don't Blame me I Voted For Gary Johnson - Libertarian, "it's F*&#In$ Embarrassing" - George Carlin.
BeNice January 02, 2013 at 06:52 PM
It is a high tax but most people I know (and they are all hard working middle class folks) don't have to worry about this tax change. They are too worried about meeting monthly mortgage payments and bills, rising costs from food to gas and dealing with year after year of salary freezes or mininal raises..not enough to keep up. They most likely pay a higher percentage of tax than many of the wealthy. Yes, the higher tax stinks but I wouldn't use the word devasting!

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