The “Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010″ has now been signed into law. With regard to estate taxes, this law sets the estate tax exemption at $5 million through 2012. The tax rate on the non-exempt portion is 35%. But, it is unknown what will happen in 2013; the new law has a sunset provision, so without any changes by Congress, the estate tax exemption will revert to $1 million, at 55%, in 2013.

An estate plan is the legal documentation to carry out your wishes and distribute your property upon your death. An estate plan also includes planning to handle your affairs during any time when you are unable to do so, directions to medical care providers regarding decision making, and if you still have minor children, states your wishes as to whom you would like to care for your children if you should unexpectedly pass away. An estate plan will also be designed to minimize the impact of federal estate taxes, the Oregon inheritance taxes and other taxes that may be involved.

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