Federal Estate Tax

The rumors just weren’t true.  The US Senate and House will not be allowing for an exemption of taxes on Estates; estates being that which is transferred via a will or according to the state laws of intestacy.  I don’t think this will upset too many individuals out there considering the amount the exemption is now set at. For an individual the amount free of taxation is set at $3.5 million and $7 million for married couples.

The Fiscal 2010 Budget Resolution decided the estates tax would continue into the New Year. The Bush-era tax legislation passed in 2001 stated the estate tax would disappear on January 1, 2010. The Obama administration has now called for indexing the exemption amounts for inflation. Gather all the tax tips you can and make the best of it.