The exemption amount for Federal Estate Tax was $3,500,000, with the highest estate tax rate of 45% until December 31, 2009. On January 1, 2010 it was repealed. Unless Congress does something to change things, on January 1, 2011, the Estate Exemption goes back to $1,000,000, with the highest estate tax rate of 55%.
Uncle Sam will look at the whole estate, including any insurance proceeds, whether payable to the estate or not, in determining the size of a person’s taxable estate. So even if you may not have much more than a home, vehicles, a few stocks and bonds, and a retirement account, if you have life insurance, you may very easily exceed the exemption amount.
If you may have a taxable estate and would like a no-cost review to see if tax planning would be beneficial, please give us a call or email to set up an appointment.
