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+ Generate more active business earnings through partnerships and S corporations. estate and Gift Tax Changes for 2013 Taxpayers with property valued in excess of $1 million could potentially be subject to an estate tax at rates as high as 55% if they die in 2013 or after. Taxpayers could likewise be subject to a gift tax if their cumulative taxable gifts exceed $1 million in 2013 with tax rates (like the estate tax) as high as 55%. This is a significant change from the 2012 rules under which taxpayers had a $5.12 million estate and gift tax exemption and faced a maximum tax rate of 35%. ACTioN To Be TAKeN: Taxpayers may consider the following steps to help mitigate the effects of the higher tax rates and lower exemption levels. + Taxpayers should first assess the value of their estates to determine what potential estate tax they may face. At a $1 million exemption level, all it might take is a nice home or a family farm/ranch to be subject to a significant estate tax. + Taxpayers who expect to receive an inheritance should request that the property be passed in trust. If structured properly, trust assets will not be included in a beneficiary���s estate and can pass to his or her requested beneficiaries (typically his or her children). + Similarly, a taxpayer leaving an inheritance should consider leaving the inheritance in trust. + There are a variety of techniques to reduce estate taxes. These can range from simple, straightforward approaches such as annual gifting to more sophisticated techniques such as family-limited partnerships and defective trusts. The new 2013 taxes as described above may not be the final word. New laws could be passed that substantially modify the analysis above. What Congress and the president ultimately agree to (or whether they agree at all) is anybody���s guess. What is likely, however, is that taxes will increase in some form or fashion in 2013. Bennett Allison, CPA, CFP, is a shareholder at Sol Schwartz & Associates, P.C. (cba@ssacpa.com). He has 16 years of public accounting experience serving individuals, corporations, S cor porations, partnerships, tr usts, estates and nonprofit organizations. In addition, Bennett works with a high concentration of physician practices and high-net-worth individuals. Contact Bennett at (210) 384-8000 ext. 138. ��� For ��more ��than ��30 ��years, ��Strasburger ��attorneys ��have ��provided ��comprehensive, ��creative ��and ��cost-�� effective ��legal ��services ��to ��clients ��in ��the ��health ��care ��industry. �� ��Our ��team ��members ��collaborate ��and �� take ��a ��360-��degree ��approach ��to ��assist ��physicians, ��hospitals, ��health ��care ��facilities, �� health ��systems ��and ��other ��organizations ��on ��matters ��relating ��to: �� BUSINESS ��AND ��TRANSACTIONS ��| ��OPERATIONAL ��AND ��REGULATORY ��ISSUES ��| ��REIMBURSEMENT ��SPECIALTY ��HEALTHCARE ��AREAS ��| ��INTELLECTUAL ��PROPERTY ��| ��LITIGATION ��AND ��ALTERNATIVE ��DISPUTE ��RESOLUTION �� For ��more ��information, ��please ��visit �� ��www.strasburger.com �� Austin �� Collin ��County �� Dallas �� Houston New ��York �� Washington, ��D.C. �� Mexico ��City ��-�� ��Strasburger ��& ��Price, ��SC 300 ��Convent ��Street, ��Suite ��900 ��| ��San ��Antonio, ��Texas ��78205 �� 210.250.6000 ��telephone MdNewS.CoM ��� MD News San Antonio | 11