Estate Taxes

If there is a confusing area of tax law it involves the current status and future changes in the Federal estate tax laws. For several years, the amount of an estate that was within the estate tax credit amount has been increasing. This means that you could have a bigger and bigger estate without owing any estate tax. This year (2010), there is no Federal estate tax for anyone. However, the shoe drops next year!

If you die next year, and your estate is greater than one million dollars, you will have estate tax liability. Your estate includes anything in your name or anything over which you can exert control. If you are married, it's likely that half the value of your house is included in this value.

It's expected that the law will change, raising the amount of the tax credit, and therefore, allowing you to leave a bigger estate without tax. However, it hasn't happened yet. It's very important to work the an attorney and a CERTIFIED FINANCIAL PLANNER(TM) practitioner to help you with your estate planning needs. If you might owe estate tax, it matters even more.

We'll talk more about your estate planning issues later this year!

Be prosperous!
Peggy