New estate Tax Rates

Here is a quick summary of the new Estate Tax rates signed into law December 17, 2010

2010
Estate Tax
Exclusion amount: $5,000,000
Maximum tax rate: 35%
Carryover basis: Option to elect carryover basis instead of estate tax treatment

Gift Tax
Exclusion amount: $1,000,000 (no change)
Maximum tax rate: 35% (no change)

2011-12
Estate Tax
Exclusion amount: $5,000,000
Maximum tax rate: 35%

Gift Tax
Exclusion amount: $5,000,000
Maximum tax rate: 35% (no change)

Congress Fiddling on Estate Tax Reform

After 8 years of doing nothing, the House of Representatives has not reached a consensus on revising the Estate Tax. The current estate tax rate is 45 percent with an exemption level of $3.5 million for individuals and $7 million for couples. Unless something is done, in 2010 the rate and exemption level will fall to zero and then jump up to 55 percent and $1 million, respectively, in 2011.

Some Congressmen want to extend the current structure for one year. In the meantime, the taxpaying public is left to just guess.

The Best Way to Save Your Estate is Vote for Ron Paul in the Primaries:

Here is a video of Ron Paul Summarizing some of his positions:

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Remember to Contribute to Dr. Paul's Campaign onm December 16, 2007

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