When actor Philip Seymour Hoffman died suddenly on Feb. 2 at age 46, he left behind his life partner Marianne and their three children. His net worth was estimated at $35 million and, in 2004, around the time their first child was born, he executed a will leaving everything to Marianne.
This week's post will continue on last week's topic of what the American Taxpayer Relief Tax Act of 2012 means to life-time gift and estate tax planning. In regards to the portability of exclusion amounts, there are requirements in timing and filing of paperwork in which an estate planning attorney should be consulted as early in the process as possible to avoid losing this important exclusion. The prerequisite filing of an estate tax return when the first spouse passes is important, even if there is no tax owed.
There has been much uncertainty with what Congress would do to the estate and gift tax rates and limitations, but that has all been determined with the American Taxpayer Relief Tax Act of 2012. Now, California estate planning attorneys have a tax code they can work with for the long-term. Few changes were made but the important point is that Congress made the system that has been in place for two years permanent.