Taxpayer Relief Act of 2012

Five New Rules of the Tax Payer Relief Act of 2012 Congress has passed a relatively short (157 pages) bill with far-reaching implications.  Here are five new rules that may impact many of us: 1.  The income tax rates will not change for 98% of taxpayers.  The other 2%, those earning over $400,000/year or $450,000/year for couples, will have a new high tax rate of 39.6%.  Of course, even though the rate stays the same for most of us, we will be keeping less of our money.  Payroll taxes will be 2% higher and a myriad of other, non-income taxes, will put government’s hand deeper in our pockets. 2.  Those same 2% with the highest tax rate, will also pay a 20% tax on capital gains.  Those are, however, people likely to invest.  The impact of that increase will be interesting to watch. 3.  The Estate tax exemption will remain at $5 Million, but with a higher tax rate – now 40%.  The Portability provision also becomes permanent.  This change is most surprising.  With the current administration’s class warfare rhetoric, it is surprising that the exemption is so high.  No tax on your first five million? 4.  The Alternative Minimum Tax will now be indexed to inflation – “permanently.”  This will avoid the annual patch we had needed up until now. 5.  Roth plans are now able to make in-plan conversions at any time. More information will be trickling out over the next days and weeks.  Overall, though, the changes made are favorable for most of us and will do absolutely nothing to change the crushing debt and reckless spending of our “leaders.”


Older Americans’ Month 2012 – Never Too Old to Play

May is Older American’s Month May is Older Americans Month, a perfect opportunity to show our appreciation for the older adults in our communities. Since 1963, communities across the nation have come together to celebrate Older Americans Month—a proud tradition that shows our nation’s commitment to recognizing the contributions and achievements of older Americans. Never Too Old To Play! Visit the official website here – Many activities! Older Americans’ Month is being celebrated every Sunday on Law Review Radio: Law Review Radio is aired at 2:00 pm every Sunday on AM 1030 in Tucson and is hosted by Tucson Estate Planning and Elder Law Attorney Ronald Zack – 520-664-3420 Streaming on Ronald Zack, a Tucson area Estate Planning and Elder Law attorney, offers affordable, basic and advanced estate planning packages to fit each situation. Counseling focuses on your needs and desires.  Please call and ask about our plans. Estate planning objectives include providing for yourself and loved ones in the event of your disability and providing for loved ones after you are gone. A carefully prepared estate plan can assure the transfer of your non-financial wealth, along with your financial assets.   In addition to wills, trusts, powers of attorney and other planning documents, Ronald Zack can help with any actions in Probate Court – guardianships, conservatorships, probate administration and ALTCS planning.  Please call for a comprehensive evaluation that will focus on your needs and your particular situation, needs and budget. Ronald Zack PLC 520-664-3420, 520-331-3232; 177 N. Church Ave., Suite 1015 Tucson, AZ 85701


Die Responsibly

Everybody dies.  Yes, everybody claims to know that simple truth, but only a few act like their death could actually happen someday.  According to a study, “only 69 percent had discussed end-of-life care with a spouse’ just 17 percent, or 40 percent of those over 65 had done so with their children. One third of Americans had a Living Will and even fewer have taken the more legally enforceable measure of appointing a health care proxy to act on their behalf if they cannot act for themselves.” By “2030, more than 8.5 million Americans will be over 85 – an age at which roughly half will suffer from Alzheimer’s disease or some other form of irreversible dementia. For many members of the baby boom generation — more likely to be divorced and childless than their parents — there may be no legal next of kin.” These facts were printed in a recent New York Times article called “Taking Responsibility for Death.”  Read the article here. Advance Health Care Directives – a living will and health care power of attorney – are some of the most important parts of your estate plan.  There are forms available at most hospitals and online.  Some forms are statutory.  These “one-size-fits-all” forms may be better than nothing – or they could create problems. It is best to invest in sound legal advice to explore options, identify potential problems and to clearly express your wishes and desires for end of life care.   Integrity – Service – Education Ronald Zack offers affordable, basic and advanced estate planning packages for your situation. Counseling focuses on your needs and desires.  Please call and ask about our plans. Ronald Zack is a Tucson Estate Planning and Elder Law attorney who can help design an estate plan that will achieve your […]