Friday, April 17, 2009 Death & Estate TaxesYou probabaly know the two go hand in hand. But did you know that the US Government will soon (2011) get a windfall from people that die with estates valued at more than $1 million (and in California that is easy to do)!
Your estate will have to pay federal estate taxes if its net value when you die is more than the "exempt" amount set by Congress at that time. Here is the current schedule:
Year of Death........."Exemption" Amount
2000-2001..................$675,000
2002-2003..................$1 million
2004-2005..................$1.5 million
2006-2008..................$2 million
2009.........................$3.5 million
2010.........................N/A (estate tax repealed)
2011 and therafter.......$1 million
2011 is coming fast and with our government's current spending strategy it seems highly unlikely that the exemption amount will go back up anytime soon after 2011. Stay tuned as we wait and see what Congress plans to do with all your hard earned money.
Fortunately, through estate planning there are techniques you can employ to reduce your estate taxes. You should talk to your lawyer and CPA about ways to reduce your estate taxes. |