Now is the time to continue pondering:
THERE ARE NO FEDERAL ESTATE TAXES IN 2010.
And the problem with that statement:
The law will change before the end of 2010.
so THERE WILL be federal estate taxes for people who die in 2010;
UNLESS THE LAW DOESN’T CHANGE.
This creates the dilemma of what an estate planning lawyer should tell her/his client.
From Your Tax-Free Estate?
To understand the dilemma you need to understand the way federal estate taxes were imposed before 2010.
The law in 2009 provided for an applicable exclusion amount. This meant that a person dying with an estate worth less than $3,500,000 would NOT have to pay federal estate taxes.
PRETTY GOOD DEAL FOR MANY MANY PEOPLE.
Don’t you agree?
A VERY GOOD DEAL FOR MARRIED COUPLES.
The way this plays out is that a married couple*could plan its estate so that the survivor of them had the combined wealth of the 2 of them of $7,000,000 and not pay federal estate taxes.
(*that is MARRIED as understood in the arcane (and shall I say unjust?) federal law)
You read that correctly.
- Even when there are federal estate taxes, for a MARRIED COUPLE the survivor CAN HAVE THE COMBINED WEALTH OF THE TWO OF THEM OF SEVEN MILLIONS DOLLARS WITHOUT PAYING FEDERAL ESTATE TAXES.
MARITAL DEDUCTION
Federal Estate Tax Law (when it exists, say in 2009 and probably 2010 and forward) makes a really good provision for married couples**.
(**that is MARRIED as understood in the arcane and unjust federal law. Why do I keep thinking that the Supreme Court already established that separate is not equal?)
2009 law allowed that any amount of money could pass from one spouse to the other spouse who is a citizen of the United States without taxation.
- Each married person may leave as much property as he or she wishes to his or her (citizen) spouse, free of federal estate tax.
Now you know enough to understand the estate planner dilemma… coming up soon!
Now is the time to continue pondering:
THERE ARE NO FEDERAL ESTATE TAXES IN 2010.
And the problem with that statement:
*The law will change before the end of 2010
so THERE WILL be federal estate taxes for people who die in 2010;
UNLESS THE LAW DOESN=T CHANGE.
This creates the dilemma of what an estate planning lawyer should tell her/his client.
To understand the dilemma you need to understand the way federal
estate taxes were imposed before 2010.
The law in 2009 provided for an applicable exclusion amount. This meant that a person dying with an estate worth less than
$3,500,000
would NOT have to pay federal estate taxes.
PRETTY GOOD DEAL FOR MANY MANY PEOPLE. Don=t you agree?
A VERY GOOD DEAL FOR MARRIED COUPLES.
The way this plays out is that a married couple
*(that is MARRIED as understood in the arcane (and shall I say unjust?)
federal law)
could plan its estate so that the survivor of them had the combined wealth of the 2 of them of $7,000,000 and not pay federal estate taxes.
Your read that correctly.
***Even when there are federal estate taxes, for a MARRIED COUPLE the survivor CAN HAVE THE COMBINED WEALTH OF THE TWO OF THEM OF SEVEN MILLIONS DOLLARS WITHOUT PAYING FEDERAL ESTATE TAXES.
MARITAL DEDUCTION
Federal Estate Tax Law (when it exists, say in 2009 and probably 2010 and forward)
makes a really good provision for married couples.
*(that is AMARRIED@ as understood in the arcane and unjust
federal law. Why do I keep thinking that the Supreme
Court already established that separate is not equal?)
2009 law allowed that any amount of money could pass from one spouse to the other spouse who is a citizen of the United States without taxation..
* Each married person may leave as much property as he or she wishes to his or her (citizen) spouse, free of federal estate tax.
Now you know enough to understand the estate planner dilemma… coming up soon
