The Law Offices of Scott Alan Morrison, P.A.
Frederick
Location
301-694-6262
Hagerstown
Location
301-293-0010

Estate administration and planning after the fiscal cliff, update

The fiscal cliff held everyone's attention for months. There was tremendous worry on many fronts due to the high degree of uncertainty as to what the new decisions would be. Just last week, this column addressed some of the concerns that the fiscal cliff could have for individuals and families dealing with the alternative minimum tax if a fix were not introduced. Now that at least a short term resolution to the fiscal cliff has been reached, people who engage in estate planning and estate administration in Maryland and elsewhere can take a few steps to improve their circumstances and respond to the new laws, rules and policies that are in place.

There are opportunities to be taken advantage of in financial and estate planning following the resolution of the fiscal cliff. For people who make modest investments, there are more opportunities regarding Roth conversions that may or may not be beneficial. People in the highest income brackets will see their taxes increase by 4.6 percent which may impact investment plans, and the estate tax went up to 40 percent as well. A 'fix' for the Alternative Minimum Tax has been put in place for another decade, which could affect some families' investment decisions.

Adjusting an individual's or family's investments in response to the new opportunities and taxes that will apply going forward requires a good understanding of the whole of the relevant financial planning picture. The decisions should not be made in a vacuum or based upon the general consensus. Each estate plan and decisions about current and future estate administration turn on personal factors as much as the laws and policies set in place by the government, whether it is the federal government or the state government here in Maryland.

It is a good idea to review investments and the investment plan every year, especially this year with the additional changes to tax laws. Current changes to tax laws are effecting estate administration in a significant way. Staying up to date and modifying your estate plan in response to these changes in Maryland and throughout the country is an important way to protect your own and your family's interests.

Source: usnews.com, "Post-Cliff Financial Plans for 2013," Roger Wohlner, Jan. 2, 2013

No Comments

Leave a comment
Comment Information
  • Best Of The Best The Frederick News Post
  • Bar Association Of Frederick County, Maryland
  • NAELA National Academy Of Elder Law Attorneys, Inc.
  • Maryland State Bar Association Inc.
  • Washington County Bar Association , DC Bar
Form Submit Button

Schedule Your Free Consultation Today

For more information and a free consultation with a Maryland estate planning attorney, call us at 301-694-6262 or fill out the form below. We provide clients with the estate services they need.

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

We have offices in Frederick and Hagerstown, Maryland, to serve you.

Evening, weekend and off-site appointments are available upon request. Free parking is available at our Frederick office.

Our office will follow the same closing & delays as Frederick County Public Schools for both offices due to inclement weather.

Frederick Office
141 W Patrick Street
Suite 300
Frederick, MD 21701

Phone: 301-694-6262
Fax: 301-668-8884
Map & Directions
Frederick Law Office Map

Hagerstown Office
Cornerstone Wealth Center
19833 Leitersburg Pike
Suite 1
Hagerstown, MD 21742

Toll Free: 866-220-5185
Phone: 301-293-0010
Map & Directions
Hagerstown Law Office Map

Contact This Office Contact This Office