Federal Estate Tax Update
In 2009, decedents with estates eclipsing $3.5 million were subject to federal estate tax rates starting at 45%. In 2010, the tax was repealed entirely for one year. For 2011, the tax was scheduled to return on estates over $1 million up to a tax rate of 55 percent. A new law increases the exclusion amount for 2011 to $5 million ($10 million total for husband and wife or the survivor of them) and lowers the maximum rate to 35%. The new estate tax law expires in two years, so more changes may lie ahead.
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