Your Estate and Taxes

As you evaluate the size of your estate, by necessity, your thoughts will turn to taxes. The two are inextricably intertwined, sometimes in very complex ways. Once an estate surpasses the per-person applicable exclusion amount of $2,000,000 (for 2008), federal estate tax rates climb rapidly, to as high as 45%. The amount you can transfer tax free at death will increase to $3.5 million in 2009, and in 2010, the federal estate tax will be repealed for exactly one year. Unless Congress takes further legislative action, in 2011, the estate tax will return at levels in effect prior to 2001. Take steps now to plan an effective strategy to help minimize the estate tax burden for your heirs.

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