• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer
  • Home
  • Who We Are
    • About Our Firm
    • Attorney and Staff Profiles
    • Scott P. Schomer Certified As Specialist In Estate Planning, Trust And Probate Law
    • Trust and Probate Litigation: Verdicts and Settlements
  • Services
    • Estate Planning
    • Probate
    • Trust Administration
    • Trust, Probate and Estate Litigation
    • Family-Owned Businesses
    • IRA & Retirement Planning
    • LGBTQ Estate Planning
    • Loss of a Loved One
    • Power of Attorney
    • SECURE Act
    • Special Needs Planning
    • Asset Protection & Business Planning
    • Estate and Gift Tax Figures
    • Young Families
  • Probate
    • Is Probate Always Necessary In California?
    • Probate & Estate Planning Savings Calculator
    • Probate Administration
    • Probate Code 850 Petitions
    • Probate Disputes
    • Probate In California
    • Probate Laws
    • Probate Litigation
    • Why Hire A Probate Attorney
  • Elder Law
    • Conservatorship
    • Coping with Alzheimer’s
    • Estate Planning
  • Resources
    • Elder Law
      • Elder Law & Medi-Cal Definitions
      • Elder Law Reports
    • Estate Planning
      • Estate Planning Articles
      • Estate Planning Checkup
      • Estate Planning Definitions
      • Estate Planning Reports
        • Advanced Estate Planning
        • Basic Estate Planning
        • Estate Planning for Niches
        • Trust Administration
      • Incapacity Planning Definitions
      • Is Your Estate Plan Outdated?
      • Special Needs Planning Can Protect Benefits
      • Top 10 Estate and Legacy Planning Techniques
    • Free Estate Planning Worksheet
    • Free Seminars
      • Webinars
    • Frequently Asked Questions
      • Advance Health Care Directives
      • Asset Protection
      • California Adult Conservatorship
      • Estate Planning
      • Estate Planning & Remarriage
      • Frequently Asked Questions For Families Without An Estate Plan
      • In-Home Elder Care
      • IRA Inheritance Planning
      • IRA & SECURE Act
      • Irrevocable Trust
      • Last Will and Testament
      • Legacy Wealth Planning
      • LGBTQ Estate Planning
      • Living Trust
      • Probate
      • Special Needs Planning
      • Trusts
      • Trust Administration
      • Wills
    • Newsletters
    • Pre Consultation Form
    • Presentations
    • Published Book
    • Trust Administration & Probate Resources
      • Bereavement Resources
      • How to Know if You Need Extra Help With Your Grieving
      • Loss of a Loved One
      • The Mourner’s Bill of Rights
      • Things You Need To Do When a Loved One Passes Away With a Trust
      • Things You Need To Do When a Loved One Passes Away With a Will
      • Trust Administration & Probate Definitions
  • Reviews
    • Our Reviews
    • Review Us
  • Communities We Serve
    • Los Angeles County
      • Bellflower
      • Cerritos
      • El Segundo
        • El Segundo Probate Resources
      • Hawthorne
      • Inglewood
      • Long Beach
        • Long Beach Elder Resources
        • Long Beach Probate Resources
      • Manhattan Beach
      • Playa del Rey
      • Santa Monica
      • Westchester
        • Westchester Elder Resources
        • Westchester Probate Resources
    • Orange County
      • Anaheim
      • Buena Park
      • Cypress
      • Fountain Valley
      • Garden Grove
      • Huntington Beach
        • Huntington Beach Elder Resources
        • Huntington Beach Probate Resources
      • Los Alamitos
        • Los Alamitos Probate Resources
      • Rossmoor
      • Stanton
      • Seal Beach
      • Westminster
  • Contact Us
  • BLOG
  • Videos

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Schomer Law Group, Los Angeles Estate Planning and Elder Law and Elder Law Attorneys

Connect With Us Today (310) 337-7696

Attend a Free Event
Home » Estate Planning » Estate Tax Exposure and Affluence in Los Angeles

Estate Tax Exposure and Affluence in Los Angeles

June 4, 2019Estate Planning

estate taxWe have a diverse economic landscape in Southern California, but at the higher end of the spectrum, there are positions that pay exorbitant salaries. There are countless major corporations, and this is the home of the entertainment industry, so there is some big money being made every day in the television, music, and motion picture sector.

It is also a major hub of professional sports, so we have more than our fair share of elites that have tens of millions of dollars at minimum living in and around Los Angeles.

Clearly, this is what it’s all about, because everyone wants to make a good living, regardless of the extent of your capabilities. This being stated, there is an estate planning facet to seriously consider if you are residing in the financial stratosphere.

Federal Estate Tax

You get to enjoy your life to the fullest when you have no limitations financially, and this is certainly a great personal reward. In addition to your own advantages, you have the ability to pave the way for your loved ones if you have been able to accumulate a robust legacy.

Whether you are wealthy, middle-class, or on the lower end of the income scale, you pay taxes throughout your life. There are income taxes, sales tax, property tax, capital gains tax, etc.

Since you pay a never-ending stream of taxes while you are living, and the numbers get quite high if you are wealthy, you would think that you have paid enough by the time that you pass away.

An additional tax that is triggered by the event of your death seems like an instance of double taxation. After all, your property was acquired with after-tax earnings. You have already paid your taxes, so why should money that has already been taxed be taxed once again?

On a purely logical level, it is difficult to contend that the estate tax is fair, but nonetheless, it is a fact of life. Plus, in addition to the questionable nature of its existence, you have to wonder about the maximum rate, which seems almost punitive. It is 40% at the time of this writing.

Estate Tax Exclusion

The reason why the estate tax is only a factor for high net worth individuals is because of the credit or exclusion. This is a certain amount that can be transferred tax-free before the estate tax would be applied on subsequent transfers.

At the time of this writing in 2019, the exact amount of this exclusion is $11.4 million. Each year there are adjustments to account for inflation, so it is likely that the figure will be somewhat higher next year. To provide some insight with regard to what to expect, in 2018 the exclusion was $11.18 million.

If you are married to an American citizen, you have the right to use the unlimited marital deduction. This gives you the ability to transfer any amount of property to your spouse free of taxation. Of course, this is not an estate planning strategy in and of itself, because the spouse would be faced with estate tax exposure.

This being stated, there is an advantage when these circumstances exist in the form of portability. The surviving spouse can add the exclusion that was allotted to his or her deceased spouse to their own, so you are looking at $22.8 million for a surviving spouse using the parameters that are currently in place.

Gift Tax

Your first thought when you hear about the estate tax is naturally going to be lifetime gift giving to circumvent the death levy. To close this loophole, there is a federal gift tax, and it is unified with the estate tax. The exclusion is a unified exclusion that applies to lifetime gifts along with your estate when it is being transferred to your heirs.

Our Worksheet Can Boost Your Knowledge!

We have developed a number of very useful resources that we offer free of charge on this site, and one of them is our estate planning worksheet. You can learn a lot if you take advantage of it, and you can get your copy right now if you visit our worksheet download page and follow the simple instructions

  • Author
  • Recent Posts
Scott Schomer, Estate Planning Attorney
Scott Schomer, Estate Planning Attorney
A graduate of Boston University School of Law, Scott P. Schomer is a frequent lecturer on estate planning and elder law issues, having discussed these important issues on local and national television. A seasoned courtroom advocate, Scott has obtained combined judgments and verdicts in excess of twenty-five million dollars for his clients. Scott has served as a member of the Los Angeles Superior Court Probate Volunteer Panel (PVP Attorney), Probate Settlement Panel and a Judge Pro Tempore. Scott's expertise has been recognized by his peers with such accolades as a life-time membership in the Multi-Million Dollar Advocates Forum, the Five Star Wealth Manager designation, and repeated nominations as California Super Lawyer.
Scott Schomer, Estate Planning Attorney
Latest posts by Scott Schomer, Estate Planning Attorney (see all)
  • Things You May Need to Update in Your Estate Plan When You Enter Retirement - March 22, 2023
  • 10 Estate Planning Tips You Cannot Afford to Ignore - March 21, 2023
  • 7 Estate Planning Steps for the Beginner - March 16, 2023

Other Articles You May Find Useful

estate planning tips
10 Estate Planning Tips You Cannot Afford to Ignore
estate planning steps
7 Estate Planning Steps for the Beginner
Estate planning
How Do I Approach the Subject of Estate Planning with My Elderly Parents?
Los Angeles estate planning attorneys
Marriage and Divorce: How Your Estate Plan Can Help Protect Assets
The Lessons from Lisa Marie
What Happens When You Don’t Trust Your Trustee – Part I

Primary Sidebar

Schomer Law Group, Los Angeles Estate Planning, Probate, and Elder Law Attorneys

Schomer Law Group

FREE Estate Planning Worksheet

There's a lot that goes into setting up a comprehensive estate plan, but with our FREE worksheet, you'll be one step closer to getting yourself and your family on the path to a secure and happy future.

Testimonials

Client Review
July 29, 2020
    

We need to update our Living Trust and attended Schomer Law Group’s seminar. Afterwards we made an appointment and were impressed by the attention Scott Schomer and Liran Aliav gave to our case answering all questions and making suggestions how to minimize the estate tax. All the office staff is very friendly and we highly recommend Schomer Law Group.

Frank & Jutta R
Client Review
July 29, 2020
    

Mr. Schomer does an amazing job at explaining all the intricacies of establishing a trust. He and his team help you every step of the way so you always know what to expect and what you are preparing for. Best education you can get and the best gift you can give your family.

Paula M.
Client Review
July 29, 2020
    

We put off getting a trust for years. After attending a seminar with Scott Schomer we realized that the time had come to get a trust. We were given very good reasons for why we should get a trust. No pressure, just the plain facts. We are very relieved and happy to finally get our trust. Scott and Cesar were very knowledgeable, helpful and listened to our ideas of what we had to say. Any questions that we have now and in the future they are available to assist us to solve them. I recommend the Schomer Law Group and I wish we knew about them years ago.

Phillip G.
Client Review
July 29, 2020
    

When you’re presented with an invitation to attend in a mailer, you may have reservations, this was a truly gift!! My wife and I were educated and guided through the process of creating a family trust.
Both of our parents had attorney’s that “worked” with wills/trusts, but came up short. Fortunately, the Schomer Law Group was there! This is a group of attorney’s that only specialize in estate planning, law, and financial advice, so you know you’re getting expert and personalized advice. This is the best money we’ve ever spent!! Thank you!

Bob L.
Client Review
July 29, 2020
    

We knew we had to update our 10 year old ( 20 page ) trust. After several detailed meetings, Liran and Cesar produced a large ( 300 pages + ) highly detailed trust document that we have used to make sure our family estate is well managed and clearly understood.
They were all very helpful in answering myriad questions and explaining all the various options…

We would strongly recommend the Schomer Law Group to anyone with an estate of even modest means, to assure proper planning…

Bob S.
Client Review
July 29, 2020
    

We had contemplated updating our will and starting a trust for a number of years. After attending a talk by Scott Schomer we realized we were long overdue and the potential downside of not having our affairs in order was significant. Scott and his excellent team made the process simple and seamless. They were great listeners, addressed all our concerns and even pulled and processed all the paperwork from our financial institutions. If you are looking for assistance with estate planning, wills and trusts, we highly recommend Schomer Law Group.

Robert F.
Client Review
July 29, 2020
    

Very competent & informative – friendly atmosphere – ready to answer the most mundane questions – relaxed.

Joan S.
Client Review
July 29, 2020
    

Mr. Schomer was excellent in getting our family trust and estate affairs in order. My husband and I had put off doing this and Scott really made the process easy! He is very passionate in making sure his clients get all that they need and we really appreciated it. I would highly recommend him and look forward to the many years he will be available to assist our family.

Kim

Follow Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest

Subscribe To Our Blog

Sign up using the form below to get our latest estate planning updates!

  • This field is for validation purposes and should be left unchanged.

Office Address

El Segundo
2155 Campus Drive
Suite 250,
El Segundo, CA 90245
Phone: (310) 337-7696
Fax: 310-337-1277

See Larger Map Get Directions

Office Hours

Monday9:00 AM - 6:00 PM
Tuesday9:00 AM - 6:00 PM
Wednesday9:00 AM - 6:00 PM
Thursday9:00 AM - 6:00 PM
Friday9:00 AM - 6:00 PM

Footer

  • Advantages of Working With Our Firm
  • About The American Academy
  • Disclaimer
  • Privacy Policy
  • Sitemap
  • Contact Us

Schomer Law Group

Connect with Us

  • Facebook
  • Twitter
  • Linkdin
  • Youtube
  • Instagram
  • Pinterest

footer-logo
© 2023 American Academy of Estate Planning Attorneys, Inc.

Schomer Law Group

Attorney Advertisement.

© 2023 American Academy of Estate Planning Attorneys, Inc.