By one estimate, Alan Rothschild, President of real estate, trust and estate law section of the American Bar Association, less than half of 1 percent of people who die in 2011 is affected by the estate tax. In contrast, 10.5% paid tax estate in 1977.
Even for the few who will be subject to tax, the proposed increase in the tax exemption of Don their will to give to their heirs of the tens of millions of dollars before the same real estate tax comes into play. "I think people will be seizing the opportunity for the next year," said Carol Kroch, head of wealth and financial planning at Wilmington Trust.
Reserve only for the rich is that tax compromise by Republican leaders and President Obama is set to expire within two years and return to much lower levels of exemption and a higher tax rate.
"It seems that me we are just defining us until 2009 and 2010 repetition around once more," said Mr. Rothschild. "It's the most frustrating part for me."
Yet, there is something roller-coaster year for tax on goods, which expired at the end of 2009 and, despite predictions, was reinstated ever in 2010. If the billionaires like Dan Duncan and George Steinbrenner died and their wealth is not subject to inheritance tax. And line they venerate the not-so-rich yet tax would hit more modest estates next year.
But this does not mean that rich people should ignore a multitude of problems in the short term. Here are some of the most important.
OPTIONS for 2010 According to the wording of tax inheritance in the Bill, the heirs of those who have died this year will have two options for a tax bill. If they chose to treat the succession by the tax laws in force in 2010, right, they shall calculate the capital gains on all assets of the estate to determine whether the value is above a level of the Internal Revenue Service. This "including artificial base" is any heir $ 1.3 million and 3 million to the surviving spouse.
Another option consists in applying the Act to 2011, exempt the first $ 5 million of the estate and imposing a rate of 35% on what it higher. It is much more generous than the law 2009 - an exemption of $ 3.5 million and a 45 percent - tax rates that many people have thought should be restored.
Ed Koren, a lawyer in Holland & Knight, who represented Mr. Steinbrenner until his death in July, said that for estates over $ 10 million, it is logical to calculate the capital gains tax rate is only 15 percent.
Estates that benefit most from the application of the Act of 2011 retroactively are those which had not been subjected to real estate tax under the regime of 2009 but may have been forced to pay capital gains taxes this year.
Enforcement of 2011 to successions in 2010 is also a gift to an individual estate worth more than 3.5 million, but less than 5 million. $ 1.5 Million would have been imposed last year.
WHY PLAN NOW?
Planning appropriate, much more can minimize taxes. It can help you to control what happens to your assets.
Dr. Koren has refused to comment on the details of Mr. Steinbrenner's estate, but he said the family was never in danger of losing control of the New York Yankees to pay a fee. He said: "I can say with certainty that the Yankees have been on the block this year if there is a tax on the goods".
The reason is years of diligent planning. "It must be an aggressive approach and continues," he said. "I've represented George for 22 years."
Yet without the spectre of an estate tax lawyers and accountants fear that people will be any plan. They will leave what is known in the industry as "I Love You" wills, while giving the surviving spouse.
Taking this path, however, control of rich evolving how their assets will be distributed. "Estate attorneys were hidden behind the estate tax discuss assets leaving trust to spouses," said Mr. Rothschild. "It y other less pleasant to leave assets in trust as remarriage and competence reasons."
BONANZA gift. Much is made of low how the estate tax rate is above $ 5 million exemption. Dan Kesten, Davis and Gilbert in New York City lawyer noted that a succession of $ 100 million will contribute $ 20 million less in taxes in 2011 it would have if Congress had not acted and estate tax returned to the level of 2001 - a rate of 55 percent for estates over $ 1 million.
But the problem is that the law is set to return to this level of 2001 in 2013, if nothing is done to make the permanent current figures.
The real advantage to the very rich is an increase of $ 1 million $ 5 million gift exemption. A couple who had given money to limit the exemption of old, this means that they can spend an additional $ 8 million to their heirs tax-free.
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