By YiLin ZhuSunday, Feb. 1 2009
In the United States, the estate tax been defined as “a tax imposed on the transfer of the taxable estate of a deceased person, whether such property is transferred via a will or according to the state laws of intestacy.” According to research, the estate tax only applied to the assets exceeding $1 million. And the tax rate is beginning from 37% and going up to 55%.
So estate tax planning is very important to preserving people’s wealth for their future generations. In 2001, new law were approved to reduce the estate taxes over the next few years and completely eliminated in 2010. However, unless a new estate tax law passes by Congress before 2011, or the estate tax law will revert back to the old one. Marital status, as one of the estate tax exemptions deduction, allows a decedent to leave an unlimited amount of property to their surviving spouse. The 2001 changes in estate tax law have made the disclaimer approach especially attractive. During 2001 to today, the maximum estate tax rate has reduced from 55% to 45%. Besides, the estate tax exemption increased to $3.5 Million in 2009.
So estate tax planning is very important to preserving people’s wealth for their future generations. In 2001, new law were approved to reduce the estate taxes over the next few years and completely eliminated in 2010. However, unless a new estate tax law passes by Congress before 2011, or the estate tax law will revert back to the old one. Marital status, as one of the estate tax exemptions deduction, allows a decedent to leave an unlimited amount of property to their surviving spouse. The 2001 changes in estate tax law have made the disclaimer approach especially attractive. During 2001 to today, the maximum estate tax rate has reduced from 55% to 45%. Besides, the estate tax exemption increased to $3.5 Million in 2009.
No comments:
Post a Comment