The end of the estate tax began in 2001 with the Economic Growth and Tax Relief Reconciliation Act. That year, gradual reductions of the estate tax rate began, along with increases in the value of an estate that would be exempt from taxes.
In 2009, estates of $3.5 million or less weren't taxed; those worth more than that faced a 45 percent rate.
When Jan. 1, 2010, arrived, the estate tax disappeared. But the 2001 act that made it possible also included a provision that a stricter estate tax would return in 2011.
If no legislative action is taken, next year a federal estate tax of 55 percent will be assessed on estates of more than $1 million.I know $1 million sounds like tidy sum, but that includes an assessment of everything, including property. Hang in there Granny.
---------------------------------------------------------------------------------------------- A Bill O'Reilly essay was featured in the NY Post today. In it, Mr. O'Reilly puts forth an impassioned and surprisingly succinct and convincing argument in support of our aforementioned Mr. Snyder in his battle against the WBC. Well, that is until he writes...
"The Snyder family has a constitutional right to privacy and the pursuit of happiness."
Press Play
Oooooo! Sorry. Thanks for playing. Actually, the "pursuit of happiness," that would be the Declaration of Independence. No "Happiness" amendment, no.
So much for a strict inerpretation.
Very rich people start planning to divest themselves of their capital within the laws allowed the using gifts to their family rules.
ReplyDeleteThis is another example of being whipped up emotionally on an issue that is not going to affect 70% of Americans. First, spouses receive capital of their dead spouse without estate taxes, as far as I know in every state in the US.
The fact that there is NO estate tax this year because of a legislative snafu seems to make death so compelling. People dying from a lingering illness will jump off the building to avoid taxes on their estates much like pregnant women induce labor to make sure there child is born before in the current year. I recall some high profile political stating 2010 is the best year to die because of this. SMILE
The line forms on the right.