Coleman-Whats New in New Millenium
Coleman-Pension.Com

Estate Planning Information for 2008

The Taxable Estate
Federal Estate Tax
From To Base Rate Plus Tax on the Excess of
$ 0 $ 10,000 18% $ 0
10,000 20,000 $ 1,800 + 20% 10,000
20,000 40,000 3,800 + 22% 20,000
40,000 60,000 8,200 + 24% 40,000
60,000 80,000 13,000 + 26% 60,000
80,000 100,000 18,200 + 28% 80,000
100,000 150,000 23,800 + 30% 100,000
150,000 250,000 38,800 + 32% 150,000
250,000 500,000 70,800 + 34% 250,000
500,000 750,000 155,800 + 37% 500,000
750,000 1,000,000 248,300 + 39% 750,000
1,000,000 1,250,000 345,800 + 41% 1,000,000
1,250,000 1,500,000 448,300 + 43% 1,250,000
1,500,000 2,000,000 555,800 + 45% 1,500,000
2,000,000 2,500,000 780,800 + 49% 2,000,000
2,500,000 3,000,000 1,025,800 + 53% 2,500,000
3,000,000 10,000,000 1,290,800 + 55% 3,000,000
10,000,000 17,184,000 5,140,800 + 60% 10,000,000
17,184,000 On up 9,451,200 + 55% 17,184,000


 
For Decedents  
Dying In
Maximum Estate  
Tax Rate
Applicable
Exclusion Amount
Exemption
Equivalent
2001
55%
$220,550
$675,000
2002
50%
345,800
1,000,000
2003
49%
345,800
1,000,000
2004
48%
555,800
1,500,000
2005
47%
555,800
1,500,000
2006
46%
780,800
2,000,000
2007
45%
780,800
2,000,000
2008
45%
780,800
2,000,000
2009
45%
1,455,800
3,500,000
2010
"Repealed"
N/A
N/A
2011
55% Reintroduced
345,800
1,000,000

About the "Repeal":  The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001), was signed into law by President Bush on June 7, 2001; it "repeals" the estate tax for one year in 2010.  Given the "sunset provisons" as required under the Byrd Rule, the 2001 federal estate tax rules will be reinstated in 2011, but with just a $1 million exemption equivalent (as originally scheduled under TRA 1997). Some of the more cynical planners have called this new tax law the "Assisted Suicide Act of 2010" when referring to the single year's true tax relief, although during 2010 the assets inherited lose their "step-up" at death for many families. Consult with Coleman Consulting Corp. to best plan for ways to minimize unnecessary tax and uncertainty.

Inexpensive Life Insurance!

RETURN