Estate Tax: How Much Is Too Much by WangLawCA1


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									Estate Tax: How Much Is Too Much

Taxes are a controversial subject, but most people would probably agree that a tax that takes more of
the assets in question than it leaves behind to the rightful owners is questionable. However, this is the
situation those in the estate planning community are faced with in 2013 with regard to the federal
estate tax.

The fairness of the estate tax rate is brought into question by many observers. The maximum rate was
45% in 2009 before the one-year repeal in 2010. In 2011 the rate went down to 35% as a result of the
passage of the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010.

The 35% rate is in place through the end of this year. However, this tax relief measure is going to
sunset on New Year's Day of 2013. According to currently existing laws the maximum rate of the estate
tax shall rise to 55% in 2013.

It is difficult to wrap your head around the concept of the government consuming more than half of
the resources that you have earmarked for your loved ones. There are those in Congress who have
proposed alternatives, and changes are always possible.

Since the estate tax is imposed on resources that you have accumulated after paying taxes throughout
your life the tax in and of itself is considered by many to be unfair and unnecessary. We will see how
the matter unfolds in the future, but for now the federal estate tax is a very real and present threat to
your legacy.

Experienced estate planning attorneys Redlands CA of the Elder and Disability Law Firm offers estate
planning and business planning resources to residents of Redlands CA. To learn more about these free
resources, please visit today.

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