If you intend to leave all of your assets to your spouse, estate taxes aren't an issue: You can leave an unlimited amount of money to your spouse tax-free. Otherwise, your estate will owe taxes only if its value - including real estate, life insurance proceeds, retirement accounts and investments - exceeds a certain threshold, known as the estate tax exemption (CNN Money).
Below is a chart that shows the changes in the estate tax exemption and estate tax rate from 1997 through 2015 (Garber 2015).
Historical and Future Federal Estate Tax Exemptions and Rates:
| Year | Estate Tax Exemption | Top Estate Tax Rate |
| 1997 | $600,000 | 55% |
| 1998 | $625,000 | 55% |
| 1999 | $650,000 | 55% |
| 2000 | $675,000 | 55% |
| 2001 | $675,000 | 55% |
| 2002 | $1,000,000 | 50% |
| 2003 | $1,000,000 | 49% |
| 2004 | $1,500,000 | 48% |
| 2005 | $1,500,000 | 47% |
| 2006 | $2,000,000 | 46% |
| 2007 | $2,000,000 | 45% |
| 2008 | $2,000,000 | 45% |
| 2009 | $3,500,000 | 45% |
| *2010 | $5,000,000 or $0 | 35% or 0% |
| 2011 | $5,000,000 | 35% |
| **2012 | $5,120,000 | 35% |
| **2013 | $5,250,000 | 40% |
| **2014 | $5,340,000 | 40% |
| **2015 | $5,430,000 | 40% |
If it's all Greek to you, and you have questions about your estate plan, then please consider the advisement of a professional from Burton and Associates LLC to ensure that you are creating a Will and Estate Plan appropriate for your family.
Photo credit.
Comments
Post a Comment