The Estate & Asset Protection Law Firm Managing Partner, Shannon Pawley, Tells Readers About Step-Up In Basis Tax Provision For Highly Appreciated Property.
Estate & Asset Protection Attorney and Managing Partner, Shannon Pawley, gives a brief overview of how step-up in basis can provide significant tax savings when highly appreciated property is passed on to beneficiaries.
DECATUR, GA, June 25, 2021: Shannon Pawley, Managing Partner of The Estate & Asset Protection Law Firm, has posted a new blog on the law firm’s website entitled “Your Estate Plan Can Include Step-Up In Basis Of Highly Appreciated Property.” Ms. Pawley encourages readers to explore the benefits of this little used tax provision.
Pawley states, “If you’ve never heard of step-up in basis, don’t worry, you are not alone.” She continues, “And many of those who do know about it, use it incorrectly. So, for starters, I’ll explain what it is.”
“Step-up in basis,” says Pawley, “is a tax provision that provides savings on highly appreciated property such as stocks, bonds and real estate. This is a provision that is best declared in your estate and asset protection plan.”
Pawley goes in to explain that, “Tax basis is what the IRS considers you to have paid for an asset – in other words it is the original purchase price. When you sell an asset that has appreciated,” she elaborates, “you owe capital gains on the difference between what you paid for it and the value of it at the time you sell it.”
She further explains, “The step-up in basis provision adjusts the value, or “cost basis,” of an inherited asset (stocks, bonds, real estate, etc.) when it is passed on, after death. This often reduces the capital gains tax owed by the recipient. The cost basis receives a “step-up” to its fair market value, or the price at which the good would be sold or purchased in a fair market. This eliminates the capital gain that occurred between the original purchase of the asset and the heir’s acquisition, reducing the heir’s tax liability.” According to Pawley, “Taking advantage of this step-up in basis can be a valuable tool as you create your estate plan.”
The entire blog can be read at LINK HERE
About The Estate & Asset Protection Law Firm
The Estate & Asset Protection Law Firm was established to serve the legal needs of retiring citizens. The Firm focuses its entire practice on providing strategies to protect independence, privacy, assets and taxes from the government. Victoria Collier and Shannon Pawley have grown their law practice by providing excellent customer satisfaction with personalized wealth protection plans.
About Victoria Collier
Victoria L. Collier, CELA founded The Estate & Asset Protection Law Firm to serve the legal needs of retiring individuals. In our firm, WE BELIEVE that people should not have to lose everything they’ve worked a lifetime to earn and that every person is an individual who deserves respect and the highest quality of life possible, regardless of age or ability. We also believe that privacy and protection are the keys to personal peace.
Victoria enlisted in the U.S. Air Force during Desert Storm, 1989-1995, and also served in the U.S. Army Reserves, 1Lt. 2001-2004, JAG Corps. Victoria is a national expert on the VA Wartime Pension for veterans and their widows who need additional assistance with activities of daily living and helping them qualify for and receive tax-free income from the VA to pay for it. Victoria graduated from Valdosta State University with a B.A. in Psychology and then University of Nebraska, College of Law. In 2014, Victoria was awarded with the Alumni Master Award from the University of Nebraska.
Victoria is a Certified Elder Law Attorney (CELA) through The National Elder Law Foundation and has been named as the only attorney in Georgia as “Fellow” of the National Academy of Elder Law Attorneys (NAELA). Victoria was appointed by Governor Perdue to the Georgia Council on Aging, 2010 – 2016 and was awarded Dekalb County Veteran of the Year, 2013. She is the author of 47 Secret Veterans Benefits for Seniors; Paying for Long Term Care – Financial Help for Wartime Veterans: The VA Aid & Attendance Benefit. Victoria has co-authored several books: Blooper Episodes in Estate Planning, Don’t Go Broke in a Nursing Home, and Protect Your IRA: Avoid the 5 Common Mistakes. Most notably, Victoria co-authored the National Best Seller, The Road to Success, with Jack Canfield, author of Chicken Soup for the Soul series.
About Shannon M. Pawley, J.D., LL.M
Shannon is the firm’s Managing Partner. Born and raised in the Tidewater area of Virginia to a tightknit family with strong military service roots, Shannon learned from an early age the value of hard work and the importance of social awareness to ensure you always leave a situation in a better place than how you entered it. In her junior year of high school, Shannon served as U.S. House of Representatives Page during the 101st United States Congressional Session in Washington, D.C. This experience exposed her to numerous new cultures and worldly issues. Walking away from her experience as a U.S. House of Representative Page, Shannon knew that she wanted to pursue legal studies and be able to assist others in obtaining the best results available in difficult situations.
Shannon earned her undergraduate degree at North Carolina Wesleyan College and pursued a law degree from Michigan State University College of Law. After obtaining her law degree and becoming a licensed attorney in Michigan, she continued her educational pursuit by acquiring a LL.M. (Master of Law) in Taxation from Wayne State University.