David M Frees Esq on Pennsylvania Inheritance Tax, The Federal Estate Tax and What Worries You?
For the next few months, there is no federal estate tax. Many states ( including Pennsylvania) still have an inheritance tax, and the federal gift tax laws remain in effect. But soon, estates of more than 1 million dollars will be subject to the federal estate tax with a starting marginal rate of 42%. The top rate (after January 1st 2011) will be 55%.
Opponents of the federal estate tax call it the death tax. And those who support the death tax call the opponents shrewd liars (click here for the recent estate tax piece in the Atlantic)
But, interestingly enough, in an article where the author calls opponents of the death tax “liars” he also distorted the truth. In the Atlantic article, the author claims that the first $3.5 million dollars of each American’s estate will be free from tax.
But, unless Congress acts soon, the tax will start after the first $1 million dollars and that will include insurance and retirement accounts as well as the value of your home.
We’d like to know what you think about the federal estate tax? Please leave a comment below and tell us what you think.
And, if you have questions about the Pennsylvania Inheritance Tax, or concerns about the Federal estate tax and what to do about it, feel free to post them below in the comment section or to email them to dfrees@utbf.com
David Frees, Esq. helps affluent families and individuals to achieve their estate planning goals and objectives in the areas of will, trusts, estate tax and inheritance tax planning. The firm also works with clients facing nursing home and elder law issues.
For a complimentary appointment or phone conference call 610-933-8069 and mention PAEstatePlanners to qualify.
