Estate Tax: How Much is too Much
September 14, 2012 By Esther Wang - The Elderly and Disability Law Firm
Taxes are a controversial subject, but most people would probably agree that a tax that takes more of the assets in question than it leaves behind to the rightful owners is questionable. However, this is the situation those in the estate planning community are faced with in 2013 with regard to the federal estate tax.
The fairness of the estate tax rate is brought into question by many observers.The maximum rate was 45% in 2009 before the one-year repeal in 2010.In 2011 the rate went down to 35% as a result of the passage of the Tax Relief,Unemployment Insurance Reauthorization and Job Creation Act of 2010.
The 35% rate is in place through the end of this year.However,this tax relief measure is going to sunset on New Year's Day of 2013. According to currently existing laws the maximum rate of the estate tax shall rise to 55% in 2013.
It is difficult to wrap your head around the concept of the government consuming more than half of the resources that you have earmarked for your loved ones.There are those in Congress who have proposed alternatives,and changes are always possible.
Since the estate tax is imposed on resources that you have accumulated after paying taxes throughout your life the tax in and of itself is considered by many to be unfair and unnecessary.We will see how the matter unfolds in the future,but for now the federal estate tax is a very real and present threat to your legacy.
ABOUT THE AUTHOR: Esther C. Wang
Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate planning and business planning resources to residents of Redlands CA.
Copyright Esther Wang - The Elderly and Disability Law Firm
More information about Esther Wang - The Elderly and Disability Law Firm
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.
The 35% rate is in place through the end of this year.However,this tax relief measure is going to sunset on New Year's Day of 2013. According to currently existing laws the maximum rate of the estate tax shall rise to 55% in 2013.
It is difficult to wrap your head around the concept of the government consuming more than half of the resources that you have earmarked for your loved ones.There are those in Congress who have proposed alternatives,and changes are always possible.
Since the estate tax is imposed on resources that you have accumulated after paying taxes throughout your life the tax in and of itself is considered by many to be unfair and unnecessary.We will see how the matter unfolds in the future,but for now the federal estate tax is a very real and present threat to your legacy.
ABOUT THE AUTHOR: Esther C. Wang
Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate planning and business planning resources to residents of Redlands CA.
Copyright Esther Wang - The Elderly and Disability Law Firm
More information about Esther Wang - The Elderly and Disability Law Firm
View all articles published by Esther Wang - The Elderly and Disability Law Firm
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.
