Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Save to My Library
Look up keyword
Like this
0Activity
0 of .
Results for:
No results containing your search query
P. 1
Is Estate Tax Justified

Is Estate Tax Justified

Ratings: (0)|Views: 84|Likes:
Published by Gary Hicks
People who are engaged in estate planning would do well to be apprised of the possibility of federal estate tax exposure
People who are engaged in estate planning would do well to be apprised of the possibility of federal estate tax exposure

More info:

Categories:Business/Law
Published by: Gary Hicks on Oct 23, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as DOC, PDF, TXT or read online from Scribd
See more
See less

05/12/2014

pdf

text

original

 
Is Estate Tax Justified?People who are engaged in estate planning would do well to be apprised of the possibility of federal estate tax exposure. At the present time the rate of the estate tax is 35%, and the exclusion amount is sitting at $5 million. So if your estate is worth more than this, you're going to have to take steps to gainestate tax efficiency.And, if the laws stay the same as the are right now, a lot more people aregoing to be exposed to this tax when 2013 arrives. At that time the estate taxrate goes up to 55%, and the exclusion goes all the way down to just $1million.A lot of people look at all the above and say quite simply, why? They wonder what the justification is for having an estate tax at all, and they make acompelling case. When you think about it, your estate is comprised of assetsthat you were able to accumulate with after-tax earnings. So you've already paid your fair share of taxes by the time your legacy has been established.These resources sit safely tucked away while you are alive and they're notsubject to taxation. Why should the event of your death trigger a federal levythat will consume anywhere from over a third to over half of your wealth?In addition to the fact that the estate tax is an instance of double taxation, isalso selectively imposed via the amount of the estate tax exclusion that is in place in any given time. If the estate tax is fair and necessary, why are themajority of people exempt from it? This would be true even if the estate taxexclusion was constant, but it changes all the time.For example, if you were to pass away this year with a $5 million estate itwould pass to your heirs free of taxation. But if you happened to have passedaway in 2009 when the estate tax exclusion was $3.5 million the rate of thetax was 45% your heirs would have been presented with the tax bill of $675,000.And as things stand today, if you die on NewYear's Day in 2013 that $5

You're Reading a Free Preview

Download
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->