Federal
Estate Tax
The
Federal Estate Tax has been in flux for several years. Current law provides
for the exemption amounts and top tax rates shown in the chart. Note that in
2010, while there is no estate tax, a capital gains may be applicable to
certain assets and/or certain estates.
What
are the exemptions and tax rates?
| Year |
Exemption |
Top Tax Rate |
| 2008 |
$2 million |
45% |
| 2009 |
$3.5 million |
45% |
| 2010 |
NA |
Capital Gains Rate |
| 2011 |
$1 million |
60% |
What's
really going on here? President
Obama has said that he intends to keep the estate tax at $3.5 million. Congress
likewise is
unlikely to eliminate the estate tax altogether, despite public disdain for
the "death tax", and in fact, the House has recently introduced H.R.
436, which will keep the estate tax at current levels, among other
things. What's
next? Well, its anyone's guess after they fight it out in D.C. However, the
estate tax is only one reason to properly plan your estate. The foundation of
any well-designed plan is YOU, YOUR FAMILY, YOUR WEALTH ... and it should
contain opportunities to expand that wealth, as well as save estate taxes and
probate fees.
Below
are links to some recent news articles on the estate tax gathered from a variety of online
news and information sources.
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