Clients of Hoffman & Associates truly “step-up” as part of the firm’s ongoing Codicil Project. This initiative is helping clients save a substantial amount of money in taxes by offering them the opportunity to amend their Wills and achieve a second “step- up” in basis on assets in the estate of the surviving spouse. “Due to the changes in tax law brought about by the “Tax Relief Act of 2012″, many of our clients are now focused on income tax planning rather than on estate tax planning” states Rhiannon Brusco, Associate at H&A. “By securing a “step-up” in basis, clients can save their beneficiaries significant money in capital gains taxes because assets are passed at their current fair market value and not at their value when initially acquired by the decedent.” What does this mean in lay terms? Well, it means that the second home or rental property that mom and dad bought back in 1975 for $50,000 and left to their children in their Will, is now valued at $250,000. Rather than paying taxes on the $200,000 appreciated value, the “codicil project” assures the children can sell the home using the stepped-up basis of $250,000 and only owe capital gains tax on gain over that higher basis. For more information about Hoffman & Associates, please visit our website at www.hoffmanestatelaw.com or call us at 404-255-7400.