As you may know, there is no estate tax in place for the year 2010. Estate planning attorneys are trying to determine what is likely to happen next year, to ensure that their clients can be caught up. Unless Congress makes some changes, the estate tax will be back again in 2011. This means that no more than $1 million of an individual's estate would be exempt from the estate tax. Last year's estate tax was $3.5 million exemption. Also keep in mind that the top estate tax rate moves up to 55 percent, which is up from the 45 percent it was sitting at last year.
What does this mean? Currently, if an individual dies in 2010, their estate is not subjected to estate taxes, but that does not mean there is no federal tax liability on inheritances. This has left many estate planners in a lurch. What is the right tax to pay this year?
If you do not have an estate plan in place, you could fall victim to this same turmoil. The only way to effectively minimize taxes is to so with an estate plan so consult a North Carolina estate planner today.
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