Estate Tax Fiscal Cliff Discussions In D.C.
There Is Some Rumbling From Colleagues In Washington D.C.
The estate tax exemption amount will be increased to $3.5 million and a gift tax exemption at the same levels as 2009. This would be a significant benefit to most Americans who, unknowingly, have an estate tax problem.
Here’s why:
In 2013 the estate tax levels are set to reduce to $1 million per person. A young couple, trying to be responsible, who purchase a $1 million dollar term policy on each of them, will subject every other asset they have to a 55% tax at death. Term life insurance death benefits are counted against your personal exemption amount!
A $3.5 million dollar exemption will remove many “average” American families from the punitive 55% estate tax bracket. Hopefully these discussions and rumblings on Capitol Hill actually materialize. More to follow.
There Is Some Rumbling From Colleagues In Washington D.C.
The estate tax exemption amount will be increased to $3.5 million and a gift tax exemption at the same levels as 2009. This would be a significant benefit to most Americans who, unknowingly, have an estate tax problem.
Here’s why:
In 2013 the estate tax levels are set to reduce to $1 million per person. A young couple, trying to be responsible, who purchase a $1 million dollar term policy on each of them, will subject every other asset they have to a 55% tax at death. Term life insurance death benefits are counted against your personal exemption amount!
A $3.5 million dollar exemption will remove many “average” American families from the punitive 55% estate tax bracket. Hopefully these discussions and rumblings on Capitol Hill actually materialize. More to follow.
