Académique Documents
Professionnel Documents
Culture Documents
Visit putnamwealthmanagement.com for the latest tax and financial planning ideas from Putnam.
Unless legislative action occurs, 2012 marks the last year of a historically low tax environment for both income and estate taxes. Beginning in 2013, taxes are scheduled to increase, and for some taxpayers, this increase will be substantial:
Tax item Ordinary income Dividends Longterm capital gains Payroll (employee portion) Estate and gift taxes Maximum tax rate Maximum tax rate 2012 2013 35.0% 15.0 15.0 4.2 35.0 43.4% 43.4 23.8 6.2 55.0
Tax rates reflect highest marginal rate and incorporate additional taxes related to the health-care reform law. Health-care-related taxes include a surtax of 3.8% on net investment income and an additional 0.9% payroll tax affecting single filers with income in excess of $200,000, and joint filers with income in excess of $250,000. Assumes employee payroll tax rate of 4.2% is extended for tax year 2012. If no extension occurs, the employee portion of the payroll tax will be 6.2% in 2012.
Additionally, the federal exemption amount for estate and gift taxes is scheduled to revert to $1 million in 2013 (from $5 million in 2012).
10. Explore options with life insurance trusts to create liquidity at death
With the possibility of estate taxes increasing, families with sizable assets may want to explore life insurance as a means to create liquid assets at death to pay estate taxes. Proper planning with life insurance can help families avoid liquidating other, non-liquid property such as real estate or family-owned businesses during less-thanideal personal or economic circumstances.
*Assumes qualified, public charitable organization. Lower limits apply to other organizations such as private foundations.
Consult a qualified tax or legal professional and your financial advisor to discuss these types of strategies to prepare for the risk of higher taxes in the future. Personal circumstances vary widely so it is critical to work with a professional who has knowledge of your specific goals and situation.
This information is not meant as tax or legal advice. Please consult with the appropriate tax or legal professional regarding your particular circumstances before making any investment decisions.
Putnam Retail Management
Putnam Investments | One Post Office Square | Boston, Massachusetts 02109 | putnam.com
II9092732982/12R