Deborah Jenkins, from Forbes.com, paints a grim picture of what will likely happen in 2011. The estate tax is scheduled to return in 2011 and the estate tax exemption rate will be $1 million. Assets left to a charity or spouse is exempt from taxes. However, if both spouses pass together or if a widow or widower passes and the assets total more than $1 million, anything above $1 million can be taxed 55%.
A person’s taxable estate can include equity in the home, all money/retirement accounts, property and life insurance proceeds. One can see that it does not take long to reach $1 million. Estate planning techniques to avoid estate taxes are also being shrunk. It is essential to have a quality estate planning team comprising of a financial advisor, accountant, life insurance agent and estate planning attorney.
http://www.forbes.com/2010/04/18/estate-tax-sharp-bite-2011-personal-finance-grats-flps.html
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