Property Taxes Finalized? Not really.

Congress finally resolved the issue of property taxes last month. Really? No, they put on another temporary patch for the next two years.

What does this mean for you? If your property is valued at $ 10 million or less and you are married, you might be able to spend your entire estate to your heirs without federal estate tax ($ 5 million exemption x 2). Anything over $ 10 million will be taxed at 35 percent. These figures are for 2011 and 2012 only. After that, there is no certainty that the tax rate will be because the current solution only lasts two years.

Customers are still confused. How do they make long term planning decisions when only short-term solutions are available? What if they have a life insurance for purposes of property tax, but no longer feel it is necessary for the exemption of $ 5 million? What if clients complete insurance and now find they need at a later date because, once again, changing tax laws?

This presents a number of problems. The insurance can be more expensive to buy later because of age or increased medical problems. It may not be possible if the medical condition of the person is severe. political outlook could change and not be as attractive or flexible.

The solution? Keep the current life insurance for two at least the next few years, even if it is necessary based on the 2011 tax rate and 2012. Life insurance is all about safety, security and guarantees. Here's what customers need in their planning, to maintain the current insurance until we see what 2013 brings. Then, hopefully, long-term decisions can be made.