Estate Tax 2011
In the United States, when someone dies their personal assets, upon distribution to heirs, is taxed. This is called the Estate Tax.When a person’s assets are transfered to his or her heirs, federal estate tax is collected. The calculation for the total amount of tax due is done by adding the fair market values of all the decedent’s assets at death plus any estate tax credits and subtracting the allowable estate tax deductions from the total.
The federal estate tax 2011 re-institutes the estate tax after it was intended to be repealed in 2010. The current estate tax 2011 is $5 million. If your estate, at death, in 2011 is worth more than $5 million then you will be taxed at 35%. In 2012 the estate tax will basically remain the same. In 2013 the estate tax rate will change. In 2013 the estate tax will be 55% of all estates with a value of more than $1 million.
One of the primary objectives of an estate planning lawyer is to prepare for estate tax 2011. By moving assets into trusts, life insurance and other non-testamentary substitutes. Your accountant, estate planning lawyer, or tax lawyer will be able to help you put assets in specific locations to avoid excessive estate tax 2011