Over the coming years, the tax law gradually reduces estate and gift tax rates, and the exemption amount increases. The estate tax will be repealed in 2010, but the gift tax will be retained. Ironically, the estate tax will be reinstated in 2011 unless Congress acts to make changes once again. In the midst of these phase-in and phase-out provisions, a little planning can save thousands of dollars.
You may be surprised what your estate is worth. Add up the value of all your assets. Don’t forget life insurance which may fall into your estate. If your total value exceeds the exemption amount, you should look into what a few simple planning techniques can save your family at estate time. In addition, there are some very effective estate planning ideas that can also cut your current income tax bill.
Click here to use an estate planning calculator to help you determine what your estate is worth.
Some planning possibilities: