Estate Tax Repealed in 2010!
Now that we’ve taken care of the probate issue, let’s proceed to estate taxes. These taxes were among the most onerous in the U.S. tax system, starting at 37 percent and running up as high as 55 percent. It was a bummer to think that you might have a million dollars to leave to your kids, but the government could take half of it before the money even got to them.
On June 7, 2001, President George W. Bush fulfilled his campaign promise to reduce taxes by signing a $1.35 trillion tax cut package known as the Economic Growth and Tax Relief Reconciliation Act of 2001. A key section of the Tax Relief Act of 2001 created a significant increase in the estate tax exemption, with a full repeal slated for 2010.
On January ...