20th Jul 2010

Yankee’s owner, George Steinbrenner died on July 13, 2010 leaving his family an estimated $1.1 Billion Estate!

And, under the current 2010 tax law, his estate will pay NO ESTATE TAXES?

That’s right!   Congress and the President have not acted to change the tax code as many had expected.   Now that we are into the 2nd half of the year, and with mid-term elections underway, it is very unlikely that the anticipated repeal of the 2010 estate tax law will happen.

While the Steinbrenner estate will not have to pay any estate taxes, the estate of the middle class American, who worked for wages for 45 years, who dies next year (2011) and leaves a house, a 401(k), insurance, and a small amount of money in a modest $1.5 million estate, will pay $275,000 in estate taxes.  

The arbitrary and capricious nature of the death tax cannot be illustrated any better.

Despite the chaos caused by the tax law, it remains vitally important to have an estate plan.

The estate tax goes back into effect on January 1, 2011 with a $1 million exemption.   The law is scheduled to “sunset” 12 months later.  What Congress and the President will do is anybody’s guess right now.
 
My video “When to Review and Amend Your Trust” explains how to know when it is time to amend your living trust.   You can view the video by visiting my website at 
                            TOMPKINS-LAW.COM 
and click on the YouTube link on the homepage.


DWIGHT EDWARD TOMPKINS
Attorney at Law

This blog is intended for informational purposes only and is not a substitute for legal advice from a qualified estate planning attorney in your jurisdiction.

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