Joe and Betty have a substantial estate and have decided that it is time to do some estate planning. However, they are mystified as to the estate tax rules that are constantly changing. Currently the amount that one can give at death, free from estate tax is capped at $2 million for 2008.
However, after 2008 the picture changes, and in 2009 the applicable exclusion amount increases to $3.5 million meaning that with proper planning, the married couple could pass that amount free of estate tax.
However, in 2010 the estate tax is repealed temporarily but a new tax replaces it. Under current law, in 2011 the tax law reverts to the law that existed in 2001, meaning that the exclusion amount will be lowered to $1 million and the estate and gift tax rate will once again become progressive capping out at a marginal rate of 55%. This is an extremely confusing and worrisome situation for all people of wealth.
A Concentrix Wealth Advisor can help structure your estate by using trusts, gifts, insurance, and tax planning to minimize the tax effect on your estate at your passing, or the passing of your spouse.
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