Wealth Ezine

Guess what? There currently is not a Federal Estate Tax. No, Really!! Under the existing tax provisions the Estate Tax was completely phased out on January 1, 2010.

But don’t celebrate yet because on January 1, 2011 the Federal Estate Tax is scheduled to “reappear” with a vengeance, allowing only a $1 Million Estate Tax Exemption and a 55% Maximum Estate Tax rate.

The House has already passed legislation that has an estate tax proposal which provides for a $3.5 Million Estate Exemption and 45% Maximum Estate Tax rate to be retroactive to January 1, 2010 (we assume similar provisions would apply to effectively counter the pending catastrophe on January 1, 2011). The Senate is still developing its version of Estate Tax legislation, in a “bipartisan” manner. If Congress doesn’t act the 2011 Federal Estate Tax will be reinstated at the lower exemption and higher maximum tax rate.

Two Facts are certain – 1.) There will continue to be a Federal Estate Tax of some magnitude, and 2.) Business Owners who have not yet conducted Estate Planning in anticipation of the complete Phase-Out of the Federal Estate Tax have only 6 months to develop and implement a cohesive Estate Plan.

Consider that the Federal Estate Tax can take fully one- half of your Wealth and your State may have an Estate Tax in addition to Probate Taxes. Even worse, the Federal Estate Tax return must be filed and the Estate Tax paid within 9 months after demise, when many families are still in shock and grief. That is not the time to begin marshalling resources and making plans.

So let’s get started, immediately, if not sooner! Draft your Will and Living Will. Begin making a list of all assets – Cash, Bank and Investment Accounts, Property, Business Values, Trade Secrets, whatever. Then let’s get together to determine the possible scope of your estate and get a picture of the potential tax implications. We will work closely with your Estate Attorney to develop and implement Estate planning and tax strategies. If you don’t have an Estate Attorney we will refer you to the Estate Attorneys who work as integral members of our In The Zone team.

Six months and counting. Have you started that Will and Asset Listing yet???

We look forward to continuing to provide you with the advice, guidance and personal involvement that you have come to expect from being In The Zone.

Thanks for visiting and don't forget to glance at the Success and Tax E-Zines while you're here.

© Donald Carroll Moragne