In 2010, after a year in which the estate tax was zeroed out altogether, Congress passed a law that set the estate tax at 35 percent and exempted all estates under $5 million, adjusted for inflation. That law expires in January 2013 when the exemption will fall to $1 million and the tax will rise to 55 percent.
Many families are faced with a stark proposition. If the life of an elderly wealthy family member extends into 2013, the tax bills will be substantially higher. An estate that could bequest $3 million this year will leave just $1.9 million after taxes next year. Shifting a death from January to December could produce $1.1 million in tax savings.
Remember when putting Granny on an iceflow was considered a bad, uncivilized thing to do? More progress, brought to you by the friendly folks in Government!
Guess we should make sure rich old people don’t have “assault weapons,” huh?”
I knew of an elderly, wealthy man who died in late December 2009. His estate was worth well over $5 million. He was mentally sharp, physically active, and doing quite well for a man of his advanced years. He amassed his fortune with hard work and understood the effects of these laws all too well.
He took himself off dialysis and died right on schedule. His sacrifice put millions of dollars in the hands of his family members rather than in government coffers. I find the death tax more ghastly and terrible than any other. It really is gruesome to watch it in action.
Joel, just a heads up in case it helps. A computer literate friend tried to access the site with IE and got the error message. When he installed Firefox there’s no problem. Guess I’ll have to learn FF.
This is off the topic of your post,but a number of people (including the previous) have commented on not being able to access your blog or leave comments.I read you every day,and occaisionally post a comment,and I’m on Explorer,and I have never had a problem or been unable to connect.
Bill