The senate has overwhelmingly passed the bill to extend the Bush era tax cuts. The…
Estate & Gift Planning 2010 Style
How do you plan estate tax futures with the uncertainty reflected in our Washington politics?
As of now, even though we at Estes Armstrong Earley think some form of the old estate tax rules of 2009 will go forward, we must plan as if all are going to expire. That means if your estate in 2011 (1/2 community property assets at fair market value) exceeds $1,000,000, there may be estate taxes due at a person’s death.
In 2009, that number for exemption from tax was $3,500,000 before taxes were due with a top rate of 45%.
In 2010 there are no estate taxes, but the rules for stepped up and carryover basis at death have changed.
In 2011 the exempt amount will be $1,000,000 and the maximum rate will be 55% assuming Congress does nothing.
If you have questions on any of the above issues please call us. We will be happy to discuss your estate tax issues and assist you in a plan tailored for you.