2010 was a good year to die because there was no estate tax. Heirs would inherit a parent’s fortune without paying estate tax, which is currently 35%. In contrast, 2013 is looking like it will be a bad year to die. Currently estates that are value up to %5.12 million are exempt from estate tax, but that exemption will drop to $1 million next year if Congress does not act. Additionally, the estate tax rate will go up to 55% from 35%. More families will be subject to the estate tax and they will be paying a higher percentage of the estate they inherit.
See Robert Frank, 2013: Bad Year to Die If You’re Rich, CNBC, June 8, 2012.
Special thanks to David S. Luber (Attorney at law, Florida Probate Attorney Wills and Estates Law Firm) for bringing this article to my attention.
