Estate Taxes. (You're kidding right?)
(You're kidding, right?)
2002 $ 1,000,000 50
2003 1,000,000 49
2004 1,500,000 48
2005 1,500,000 47
2006 2,000,000 46
2007 2,000,000 45
2008 2,000,000 45
2009 3,500,000 45
2011 1,000,000 55
I know what you're thinking, but that is not a typo. As things now stand, the estate tax is fully repealed in 2010, only to return in 2011 in all of its present day glory - and then some, if you take into account 2011's top tax rate of 55 . The repeal of the repeal, or the "sunset provision" was included so that EGTRRA would not be caught in the talons of the Byrd Rule (which would have required a 3/5 or 60 senate majority vote to make the repeal permanent).
It is difficult to imagine that Congress will permit a full sunset to occur.
- It is more difficult to imagine exactly what Congress will do.
- It is still more difficult to imagine a more uncertain estate planning terrain to navigate.
So, as you can see, I was not kidding. Estate taxes have not gone away, may not go away and could be subverting your testamentary intentions. A little planning now might prevent a lot of heartache later.