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   On January 1, 2010 it was repealed.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.


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