Financial Planning Stuff You Need to Know » Obama http://longfinancialplanning.com/blog Practical Advice About Money without all the Hype Mon, 21 Jun 2010 17:33:31 +0000 en hourly 1 http://wordpress.org/?v=3.0 Obama Plans to Keep the Estate Tax http://longfinancialplanning.com/blog/2009/01/12/obama-plans-to-keep-the-estate-tax/ http://longfinancialplanning.com/blog/2009/01/12/obama-plans-to-keep-the-estate-tax/#comments Mon, 12 Jan 2009 21:44:57 +0000 Chris Long http://longfinancialplanning.com/blog/?p=135 According to the Wall Street Journal President Elect Obama plans to keep the estate tax vs. letting it expire in 2010 as the current legislation calls for.  He plans to keep the exemption at $3.5MM.

What does this mean for you?  If you die and your net worth is less than $3.5MM you will not have any estate taxes.  If you have over $3.5MM then your will pay a tax of about 45% of the amount over $3.5MM.  There are many exemptions and credits available so that even if your estate is over $3.5MM you may not have to pay tax on some or all of the amount above $3.5MM.

It is likely that this $3.5MM limit will be raised with inflation over time.  Should you already have an estate over the $3.5MM limit or it will be shortly, you should make sure your estate plan is up to date.

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