Estate Tax Would Be Expanded Under Budget Proposal

High net worth families may be in a position to make things easier on succeeding generations, but there is an impediment. The federal estate tax is looming, and with its 40 percent rate, it can certainly be felt if you are exposed. You determine your level of exposure by comparing the value of your estate to the amount of the federal estate tax exclusion. At the end of 2010,  a legislative measure set the estate tax exclusion at $5 million for 2011, and it set the rate at 35 percent. The same rate was called for in 2012, but there was an inflation adjustment that brought the exclusion up to $5.12 million. At the end of 2012 you may recall the so-called fiscal cliff situation. It was resolved through a compromise that became known as the American Taxpayer Relief Act of 2012. Provisions contained within this measure retained the federal estate tax exclusion, but there have been ongoing adjustments to account for inflation. The act raised the top rate to 40 percent. During the current c
http://www.preserveyourestate.net/estate-tax-expanded-budget-proposal/

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