Top 5 Trend – Estate Tax Changes!
I was not sure if I would be able to write this post a month ago, but Congress and the President came through with some very good changes to the estate law. Beginning in 2011, the top rate will fall to 35% from 55% and estate will only be come taxable $5 million up from $1 million.
Another great addition is allowing spouses to transfer their pre-deceased spouse’s unused exemptions. This allows couples to easily escape a $10 million estate from being taxed at the federal level. However, in most cases, states will continue to tax some estate tax on estates under these values.
Now for the drawback to the changes. It is only for TWO years. We will most likely be back in the same situation in late 2012 (of course an election year) and who knows what it will look like then.
We will keep you posted.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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