OUR PRACTICE
- About Us
- Wills and Trusts in CALIFORNIA
- Estate Planning
- Estate Administration
- Guardianships in California
- Conservatorships in California
- Business Law
- FIRST AMENDMENT RIGHTS
- AREA SERVED
- Articles and videos
- Videos
- Testimonials
- Links
- Contact Us
|
|
MINIMIZING FEDERAL ESTATE TAXES
HOW HIGH ARE FEDERAL ESTATE TAXES?
Federal Estate Taxes, better known as death taxes are very high. The following table shows the current tax rate and the exemption per individual. If congress doesn’t act the exemption will go down to $1 million in 2013 and the maximum rate will go back up to 55%.
Year Exempt Amount Highest Rate
2005 $1,500,000 47%
2006 $2,000,000 46%
2007 $2,000,000 45%
2008 $2,000,000 45%
2009 $3,500,000 45%
2010 $5,000,000 or 0% 35% or 0%
2011 $5,000,000 35%
2012 $5,000,000 35%
2013 $1,000,000 55%
Don’t forget that if you are married and there is some good news. each spouse is eligible for the exemption, Starting in 2011, the law changed so that the unused portion of the deceased spouse’s exemption may be passed on to the surviving spouse. However, you will need to file the proper documents with the IRS to capture the unused exemption transfer.