Federal Estate Tax Rates and Exemptions
The federal estate tax has been repealed...for now.
As of January 1, 2010, the federal estate tax has been repealed. The
repeal is tied to the Bush tax cuts.
If Congress does not take action before December 31, 2010, the estate
tax will be resurrected with a maximum rate of 55%. The estate tax
exemption- the amount of money that can be passed to your beneficiaries
without paying estate tax- will be $1,000,000. Many estate plans
automatically adjust based on the federal estate tax exemption. This
makes a review of your existing estate plan very important. It is also
important for you to know the size of your estate according to the IRS.
For example, proceeds from life insurance are generally included in
your estate.
For more updates on the federal estate tax and
other estate planning issues, check out our Estate
Planning
Blog.