Recent changes in estate tax laws could affect the strategy you have in place.
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For the very wealthy, 2010 was a good year to make an exit. The estate tax law expired briefly for the first time in nearly 100 years. The one year hiatus cost the US Treasury billions in estate tax revenue and may turn out to be a homerun for one famous figure in baseball.
Yankee owner George Steinbrenner passed away in July 2010, potentially saving his heirs hundreds of millions of dollars on the estate valued at $1.1 billion. Had he died in 2009, his heirs may have faced a maximum estate tax rate of 45% on assets over $3.5 million, or as much as $500 million. Had he lived until 2011, the maximum estate tax rate would have been 35% on assets over $5 million, but since he passed away in 2010, Steinbrenner’s heirs may decide to pay no estate taxes at all.
Estate tax laws have regularly been repealed, then reinstated since the first law was passed in 1797. The most recent version of the law was passed in 1916, and in some form or another, that estate tax has been with us ever since. Recent changes could affect the estate strategy you have in place, so don’t strike out when it comes to passing your wealth along to your loved ones.
Call today for more information on tax law changes.
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