Estate Tax Basics
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As with retirement planning, creating an estate plan without considering tax issues in the process can undermine even the very best efforts. At Matlin & Associates, P.C., we understand how the estate tax works and how to help people minimize or avoid its impact on them altogether.
Call our lawyers in the Chicago area at 847.770.6600 or contact us online to arrange for a free initial consultation.
An Estate Tax Primer
The Tax Relief Act of 2001 ("Tax Act") incrementally phases out estate taxes, beginning in 2002. Rates are also lowered.
|
Year |
Applicable Exclusion Amount |
Tax Rate* |
|
2004 |
$1,500,000 |
48% |
|
2005 |
$1,500,000 |
47% |
|
2006 |
$2,000,000 |
46% |
|
2007-2009 |
$2,000,000 |
45% |
|
2010 |
Unlimited** |
N/A |
|
2011 |
$1,000,000 |
55% |
*Tax Rate is maximum estate tax and generation skipping tax rate
**No Estate Tax for people dying in 2010
The Tax Relief Act of 2001 contains a "sunset" provision, meaning that if no new law replaces the 2001 Act, the law reverts on January 1, 2011 to what is was in 2001, under which the equivalent applicable amount after 2006 is $1,000,000 with a maximum rate of 55 percent.
Although there will be fewer estates subject to estate tax in the coming years, many of the strategies for minimizing estate taxes have not changed, including.
The Applicable Exclusion Amount Shelter Trust
- Annual gifting of up to $12,000 per year, per person
- Charitable donations
- Charitable trusts
- Family limited partnerships
- Irrevocable insurance trusts
- Qualified personal residence trusts
Tax-minimizing techniques can be very sophisticated, but well worth the time, effort and money spent on attorneys and accountants.
All information provided in this site is of a general nature and is not intended, nor should it be construed, as legal advice. You should not act or rely upon the information herein without professional advice after a thorough examination of the facts of each situation. Although we strive to provide accurate, up to date information, there is no guarantee that it is accurate on the date it is received or that it will continue to be accurate.
