+ESTATE

PLANNING UPDATE

Spring 2013

David M. Knasel, Esq.Dominion Business Law PLC

Tysons Corner | Leesburg, VAwww.dominionbusinesslaw.com

+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

+Estate Tax – THEN…

2012

2013

Exemption: $5.14MRate: 35%Includes “portability”

Exemption: $1MTop Rate: 55%No “portability”

+…AND NOW

2013Exemption: $5.25MRate: 40%“Portability”

+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

+

THANK YOU!