Skip to comments.Lack of Estate Tax in 2010: Now Cheaper to Die?
Posted on 01/02/2010 11:57:43 AM PST by KJC1
Well, 2010 has arrived -- and because Congress devoted so much effort toward health care reform, we may have ourselves some death panels after all.
While critics have dismissed Sarah Palin's "death panels" to dole out medical care as fiction, a tax loophole may in fact give the heirs of some wealthy people a financial incentive to make this new year their loved one's last.
In 2001, then-President George W. Bush signed a law designed to phase out the estate tax -- a tax on the assets a deceased individual leaves behind. The law reduced the amount wealthy families were taxed after death starting in 2001 -- leading to complete abolition of the tax in 2010, but at the same time it concerned some because of the financial implications of the date when someone died.
For example, a wealthy person who dies on January 1, 2011, and left her heirs $10 million would really be leaving them $5.05 million because of taxes. If they died a day earlier (assuming no changes were made in tax laws), the heirs could receive the full $10 million.
(Excerpt) Read more at abcnews.go.com ...
BUT...hubby just got annual military retirement notice. Tax on his retirement pay has risen.
Congress will pass a new law before the end of the year and make it retroactive. No way they will let the chance to tax slip them by.
Answer to loony leftists: Then make the abolition of the estate tax permanent.
Yes, and as one who has witnessed family members exhibiting all sorts of bad behaviors after a loved one dies, I say to all here: “watch your back!”
On the other hand, family farmers and ranchers often have to split up the farm so that pieces can be sold off to spay for the state taxes. This will ensure that our country’s agricluture land base has a stronger chance of surviving urban assault.
Also abolish the capital gains tax.
I don’t quite understand what is going on - if Congress does nothing (I know, not much chance) does the estate tax still stay abolished in 2011??
No - it reverts to pre-Bush levels. IOW heirs will pay estate tax on any inherited wealth above $1 million. I believe the minimum rate is 37% and the maximum rate is 55%.
I think they will try, but it was being discussed on Fox this week and it sounds as if they may not be able to legally make a retroactive tax. I’m not an expert of course, so maybe there IS precedent for it, however rest assured it will be taken to the SCOTUS. Not that I plan to die this year, nor do I have a taxable estate.
My husband has been in the trust business for 30 years. You are right, people do the most amazing things (and not amazing in a good way).
RE: “My husband has been in the trust business for 30 years. You are right, people do the most amazing things (and not amazing in a good way).”
They sure do! And no, not in a good way — the greed overtakes many and it can be quite shocking— and that’s just one aspect —
The attorney who handled my own trust said he ONLY deals with set up and maintenance now — no messy ‘family fight’ cases anymore. Don’t blame him one bit!
On the other hand my husband has dealt with some very generous and kind people thru the years, but boy, some of the things families will do to each other over money are simply hard to believe. I think a lot of times it’s greed, but in other cases it’s years of family anger and an opportunity to get back at people.
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