Tax Topic of the Day

“What are the current estate tax rates for 2010, what will the rate be in 2011 and thereafter?” For the year 2010, there is no estate tax, so you can pass your estate to your heirs tax free. Basis of assets passed to heirs will remain at the deceased’s tax basis, with limited exceptions. In 2011, unless Congress changes the tax law, an estate will be allowed a $1,000,000 exemption from the gross estate value, you may further consider the unlimited marital deduction, which can wipe out the estate tax on the first to die spouse when the second spouse dies, after the million dollar allowance for each spouse, any amount over $2,000,000 would be taxed at rates ranging from 40% to 55%.