Is a 55% Death Tax Fair?
September 13, 2012 By Anderson, Dorn & Rader, Ltd.
Some people within the estate planning community call the estate tax the "death tax" because it is a tax that is levied because you passed away and for no other reason. The assets that comprise your estate are simply your real and personal property you accumulate while you are living.You paid taxes along the way and these assets are what you were able to hold onto after paying them. They are not taxed again while you are alive.
The event of your death, however, becomes taxable in the eyes of the powers that be if the value of your assets exceeds a certain amount. That estate tax exemption amount varies from year to year.
Because your estate is comprised of an after-tax remainder you may feel as though there is no good reason to tax these resources again after you pass away.Many people would agree, but the estate tax is nonetheless something that we must contend with as American citizens.
Once you get past the question of the inherent fairness of the tax the rate enters the equation.Right now the estate tax rate is 35%,but when the compromise bill that was passed in December of 2010 expires at the end of this year it goes up to 55%.
A tax that consumes more than half of the taxable value of your estate is certainly attention-getting.There have been proposals floated with regard to reducing the rate,and legislators have even introduced various different measures that would eliminate the tax altogether.
We may see changes in the future,but right now you must brace yourself for a significant increase in the already high estate tax rate come 2013.
ABOUT THE AUTHOR: Alan L Augulis
Experienced estate planning attorneys Reno NV of the Anderson Dorn & Rader Ltd offers estate planning and business planning resources to residents of Reno NV.
Copyright Anderson, Dorn & Rader, Ltd.
More information about Anderson, Dorn & Rader, Ltd.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
Because your estate is comprised of an after-tax remainder you may feel as though there is no good reason to tax these resources again after you pass away.Many people would agree, but the estate tax is nonetheless something that we must contend with as American citizens.
Once you get past the question of the inherent fairness of the tax the rate enters the equation.Right now the estate tax rate is 35%,but when the compromise bill that was passed in December of 2010 expires at the end of this year it goes up to 55%.
A tax that consumes more than half of the taxable value of your estate is certainly attention-getting.There have been proposals floated with regard to reducing the rate,and legislators have even introduced various different measures that would eliminate the tax altogether.
We may see changes in the future,but right now you must brace yourself for a significant increase in the already high estate tax rate come 2013.
ABOUT THE AUTHOR: Alan L Augulis
Experienced estate planning attorneys Reno NV of the Anderson Dorn & Rader Ltd offers estate planning and business planning resources to residents of Reno NV.
Copyright Anderson, Dorn & Rader, Ltd.
More information about Anderson, Dorn & Rader, Ltd.
View all articles published by Anderson, Dorn & Rader, Ltd.
Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.
