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FEDERAL ESTATE TAXES
Estate and inheritance taxes are a confusing and difficult subject. Unfortunately, confusion may be compounded in the coming years as a variety of changes are phased in. As the table below indicates, the amount exempt from federal estate tax will grow, as the top estate tax rate falls. In 2010, under current law, there will be no federal estate tax, but in 2011 we will return to the exemptions and tax rates of the last century.
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Year
|
Top Estate Tax Rate
|
Federal Exempt Amount
|
Credit Amount
|
2006
|
46%
|
2.0 million
|
780,800
|
2007
|
45%
|
2.0 million
|
780,800
|
2008
|
45%
|
2.0 million
|
780,800
|
2009
|
45%
|
3.5 million
|
1,455,800
|
2010
|
0%
|
No Fed. Tax
|
No Fed. Tax
|
2011
|
55%
|
$1.0 million
|
$345,800
|
To estimate your possible federal estate tax, you must calculate the value of your gross estate then subtract any deductions to arrive at your taxable estate. Next, calculate the federal estate tax and apply any credits to arrive at the amount of estate tax due. An estate tax return for a U.S. citizen or resident needs to be filed if the gross estate exceeds the federal exempt amount, listed above. The estate tax must be paid in cash and is due nine months after death.
To find out more, please contact us.
· St. Louis
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Liz Kriegshauser
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314-746-4683
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· St. Louis
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Leah Teitelbaum
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314-746-4628
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· Columbia
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John Bailey
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573-874-8457
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· Springfield
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Keith Schawo
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417-841-4383
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· Jefferson City
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Jill Dobbs
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573-634-1397
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