Wills Trusts

Taxable and Non-Taxable Estates. Under current law, there is no Oklahoma estate tax. Until 2013, estates in excess of $5 million, including life insurance proceeds, are subject to a federal estate tax.  Until 2013, if properly structured, a married couple can transfer up to $10 million estate tax-free. As discussed below, the term “Taxable Estate” includes estates in excess of $5 million. The term “Non-Taxable Estates” includes smaller estates. Obviously, a Non-Taxable Estate could still be worth several million dollars. But the term also includes those with much smaller holdings.  Estate planning is a very personalized process, and we will structure the plan to meet your objectives. I had one client, a grandmother, who had a $200,000 estate and wanted to establish an education trust for her infant grandchild, then her grandchildren”s children, and so forth.

The $5,000,000 exemption amount will expire in 2013.  President Obama has proposed lowering the amount to $3,500,000.  We currently do not know what will happen in 2013.

When considering the size of your estate, think about the size you expect your estate to be upon death.  If you are to inherit significant wealth, then we should discuss different options to help address possible estate taxation.  If you anticipate that you will grow your wealth to in excess of $5,000,000 through investments, or through life insurance proceeds or other means, then again, we should discuss different options.

Those on the cusp of a taxable estate present unique and challenging opportunities which should be carefully discussed and considered.  I have had several clients who currently do not have taxable estates, but through the success of their business ventures anticipate that they will die with a taxable estate.  We discuss these situations and expectations and then create an estate plan that works today, but also gives the client’s estate the flexibility to implement estate planning structures to achieve estate tax savings should his or her business venture succeed as planned.

Maddux & Maddux
2642 E. 21 Street, Suite 290
Tulsa, OK 74114
Phone: 918-582-8393
Map and Directions