Free Ebook.

Enter your email address:

Delivered by FeedBurner

« Free Money Finance Carnivals This Week | Main | No Wonder College Costs So Much »

December 13, 2007


Feed You can follow this conversation by subscribing to the comment feed for this post.

Hmm. Don't forget about the expanded estate tax limit for 2009 and 2010, if Congress doesn't extend the break... Or indefinitely if it does.

When I was in school when this passed, my prof said that people with large estates were jokingly advised to hold on until 2010, when they could pass their estate tax-free. I wonder if we'll see an uptick in wealthy person deaths, though, as a result of this law (particularly if Congress doesn't extend).

There's also an decent chance Congress rolls back the estate tax exemption amount. If so, $1 million estates (and possibly lower) could once again become subject to estate tax. A competent attorney can draft your estate planning documents (wills, trusts) to address these multiple possibilities due to the uncertainty of future tax laws.

And no, I wouldn't want to be very rich, very old and a little bit sick in December 2010.

Fact is, allowing the estate tax to revert back to $1 million is a tax on the middle class. I don't know how all of these wealthy blabber mouths can say an estate tax is "good". It's not 1965 anymore, $1 million and even $2 million isn't uber money. For example, Person A with two kids and a stay at home wife, might own a three bed, two bath house in San Fransisco worth $800,000, say he was smart and maxed out his retirement accounts with $500,000 and then there is a insurance policy worth $1,000,000. Warren Buffet is going to sit back and say this person can handle it?

Dying should not be a taxable event for a normal family like I mentioned above. Person A is getting screwed IMHO.

what is imho?

IMHO = in my humble opinion

The comments to this entry are closed.

Start a Blog


  • Any information shared on Free Money Finance does not constitute financial advice. The Website is intended to provide general information only and does not attempt to give you advice that relates to your specific circumstances. You are advised to discuss your specific requirements with an independent financial adviser. Per FTC guidelines, this website may be compensated by companies mentioned through advertising, affiliate programs or otherwise. All posts are © 2005-2012, Free Money Finance.