Just over the horizon is the return of the federal estate tax.
With the estate tax repeal at the beginning of this year, even the largest estates can currently pass to heirs free of this tax burden. But a beefed-up estate tax is scheduled to return in 2011.
Without new legislation, the exemption from estate tax will drop to only $1 million from the 2009 exemption of $3.5 million.
After leapfrogging over 2010, the top estate tax rate is expected to rise from the 45 percent rate in 2009 to a whopping 55 percent in 2011. And, without new legislation, the exemption from estate tax will drop to only $1 million from the 2009 exemption of $3.5 million.
The return of estate tax means estate tax planning has become essential once again.
