If you die this year, congratulations. Under the current federal tax law, your estate will pay no tax regardless of its value. This is based on law passed in 2001 that still has not been updated by Congress. Word on the street is that Congress will pass new legislation this year regarding the estate tax. The House approved a bill last year but the Senate has not taken action. If they don't do anything estates valued at $1 million will be taxed at 55% starting next year. Yes, that's 55%!
This current limbo makes planning difficult but no less important. Everyone needs some type of plan so don't delay in getting yours done.
Wednesday, January 27, 2010
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