Federal estate taxes were first collected in 1916. Under 2001 tax legislation they are being phased out with the estate tax set to expire in 2010. *See chart* You can take action to reduce or eliminate them if you plan now.
If lawmakers do not permanently repeal estate taxes after 2010, the exemption amount returns to $1 million in 2011.
Year of Death |
Federal |
Highest Rate on "Excess" Property |
|
|
|
2004 and 2005 |
$1.5 million |
48% in 2004; |
2006, 2007 and 2008 |
|
46% in 2006; |
2009 |
$3.5 million |
45% |
2010 |
Tax Repealed |
Tax Repealed |
2011 |
$1 million |
55% |
Add your assets and then subtract your debts. Include your home, business interests, bank accounts, investments, personal property, IRAs, retirement plans and death benefits from your life insurance.