As an element of broad extension of, the laws affecting real estate planning were expanded through the year 2012. Read below for a quick overview on the primary changes in Vermont estate tax laws.
1.Raised Exemption Levels
In comparison to the most other states, the average property taxes in Vermont have been pretty high, resulting into intense debate over the matter. However, lately the federal exemption level of real estate tax is increased to $5 million per person. Other than this, several important changes are made in gift tax laws as well. While the lifetime receivable gifts were previously limited to $1 million per person, the same has also been raised to become equals to estate tax exemption, i.e. $5 million per person. This concludes that there will be no longer a gift tax penalty for making lifetime gifts, however capital gains tax impacts shall be considered.
2.Increased Portability Favoring Surviving Spouses
This refers to allowing surviving partner or spouse to apply its deceased spouse?s unclaimed federal exemption amount to its own. As an example if Peter Doe dies without arranging to protect his federal exemption, in that case his surviving spouse may add Peter Doe?s exemption to her own, allowing her to avail bigger exemption amount. However, it?s unclear how it shall work in practical as there are various other rules to follow.
3.Vermont Estate Tax
The law prohibits special tax elections to delay estate taxes till the death of surviving partner in some circumstances. Considering such a situation, it is suggested to incorporate flexibility in estate planning especially when you are to consider real estate for sale.
In conclusion, since the new rule is applicable only through the end of the year 2012, there are several uncertainties over the following Vermont real estate tax laws that decide the future real estate tax planning. Henceforth, in order to ensure maximum benefits, Vermonters who own a primary home or a higher taxed holiday home are advised to incorporate flexibility in your plan.
Disclaimer: The write up is intended to facilitate precise, accurate and authoritative information on the recent changes in Vermont estate tax laws. The information published here above is as per the understanding of the author and not a legal advice and the readers are kindly suggested to seek expert legal advice from authorized legal advisers to seek full information on Vermont Real Estate, related laws and tax policies.
Source: http://presidentelection.tk/?p=25504
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