The Elder and Disability Law Firm, APC
Reports: Dick Clark Left Huge Estate Behind
With the passing of the entertainment personality Dick Clark the world lost an iconic figure who was a part of the pop culture landscape for decades. According to reports he was extremely successful from a financial point of view during his career, amassing a personal fortune that is estimated to be in the hundreds of millions of dollars.
As a result, his family will presumably be receiving a large inheritances; but they will also be facing enormous tax bills.
The estate tax exclusion in 2012 is $5.12 million and the maximum rate of the tax is 35%. This means that only the first $5.12 million of Dick Clark's estate can pass to his heirs free of the estate tax. Everything else is subject to a 35% federal levy.
Let's say that the taxable portion of the Dick Clark estate wound up being $500 million. 35% of this is $175 million. This would seem excessive to many individuals, and remember, Clark paid taxes throughout his life on his earnings. So a lot of people would argue that he already paid more than his fair share of taxes and the event of his death should not be a taxable one.
Your family may not be faced with this level of tax responsibility, but they may well be presented with a hefty bill upon your passing if you don't take the proper steps to gain tax efficiency. To examine your position in relationship to the estate tax, simply take a moment to arrange for a consultation with a licensed and experienced Riverside estate planning attorney.