Life Insurance :Whats going on with the Estate Tax laws for 2010
Article Summary:
clipped from epblog.wachbrit.com
Congress May Impose Retroactive Estate Tax
There is currently no tax on the estates of
Article Content:
This is a very interesting article, please take the time and read this it also has some great links to other reference items and resources.
clipped from epblog.wachbrit.com
Congress May Impose Retroactive Estate Tax
There is currently no tax on the estates of those dying during 2010. Although Congress may reinstate the tax retroactively in 2010, perhaps as part of broader tax reform, this is by no means a certainty.
Congress has had nine years to prevent this from happening but hasn’t been able to. Under the provisions of a Bush-era tax-cut bill enacted in 2001, the value of estates exempt from the tax has been gradually raised over the past eight years while the tax rate on estates has been reduced, so that in 2009 only an individual estate worth .5 million or more is taxed, at a rate of 45 percent. For the year 2010, according to the 2001 law, the estate tax disappears entirely, only to be restored in 2011 at a rate of 55 percent on estates of million or more, which is where things stood before the 2001 change.
Couples With Credit Shelter Trusts at Risk
Married couples with such trusts should consult their attorney.
The Perils of Going Retroactive
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