Estate Planning
The new tax law phases in an increase in the lifetime exemption amount and decreases the top estate tax rates as stated in the table below:
| Year |
Lifetime Exemption |
Top Estate Tax Rate |
| 2007 |
$2,000,000 |
45% |
| 2008 |
$2,000,000 |
45% |
| 2009 |
$3,500,000 |
45% |
| 2010 |
No Tax |
Repealed |
| 2011 |
$1,000,000 |
55% |
What this lifetime exemption means is that you can have, as an individual at death, this amount of assets, in your name, without paying estate taxes. Our goal is to help our clients stay under these numbers, or minimize the affect that taxes have after death on their estate. For estates that exceed these levels, life insurance is commonly used to counteract the erosion of your estate and help pay the taxes. Gifting is also a great way to reduce your asset level and reduce the tax burden at death.
At All Star Financial, we utilize strategic partners with estate planning expertise to ensure that all of your estate planning needs are met.
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