Estate Planning Resources
Estate Tax
Information
in 2001
|
The Taxable
Estate
|
Federal Estate Tax |
| From |
To |
Base Rate Plus |
Tax on the Excess of |
| $ 0 |
$ 10,000 |
18% |
$ 0 |
| 10,000 |
20,000 |
$ 1,800 + 20% |
10,000 |
| 20,000 |
40,000 |
3,800 + 22% |
20,000 |
| 40,000 |
60,000 |
8,200 + 24% |
40,000 |
| 60,000 |
80,000 |
13,000 + 26% |
60,000 |
| 80,000 |
100,000 |
18,200 + 28% |
80,000 |
| 100,000 |
150,000 |
23,800 + 30% |
100,000 |
| 150,000 |
250,000 |
38,800 + 32% |
150,000 |
| 250,000 |
500,000 |
70,800 + 34% |
250,000 |
| 500,000 |
750,000 |
155,800 + 37% |
500,000 |
| 750,000 |
1,000,000 |
248,300 + 39% |
750,000 |
| 1,000,000 |
1,250,000 |
345,800 + 41% |
1,000,000 |
| 1,250,000 |
1,500,000 |
448,300 + 43% |
1,250,000 |
| 1,500,000 |
2,000,000 |
555,800 + 45% |
1,500,000 |
| 2,000,000 |
2,500,000 |
780,800 + 49% |
2,000,000 |
| 2,500,000 |
3,000,000 |
1,025,800 + 53% |
2,500,000 |
| 3,000,000 |
10,000,000 |
1,290,800 + 55% |
3,000,000 |
| 10,000,000 |
17,184,000 |
5,140,800 + 60% |
10,000,000 |
| 17,184,000 |
On up |
9,451,200 + 55% |
17,184,000 |
For Decedents
Dying In
|
Maximum Estate
Tax Rate
|
Applicable
Exclusion Amount
|
Exemption
Equivalent
|
|
2001
|
55%
|
$220,550
|
$675,000
|
|
2002
|
50%
|
345,800
|
1,000,000
|
|
2003
|
49%
|
345,800
|
1,000,000
|
|
2004
|
48%
|
555,800
|
1,500,000
|
|
2005
|
47%
|
555,800
|
1,500,000
|
|
2006
|
46%
|
780,800
|
2,000,000
|
|
2007
|
45%
|
780,800
|
2,000,000
|
|
2008
|
45%
|
780,800
|
2,000,000
|
|
2009
|
45%
|
1,455,800
|
3,500,000
|
|
2010
|
"Repealed"
|
N/A
|
N/A
|
|
2011
|
55% Reintroduced
|
345,800
|
1,000,000
|
About the "Repeal":
The Economic Growth and Tax Relief Reconciliation Act of 2001 (EGTRRA 2001),
was signed into law by President Bush on June 7, 2001; it "repeals" the estate tax
for one year in 2010. Given the "sunset provisons" as required under the Byrd Rule, the 2001 federal estate tax rules will be reinstated in 2011, but with just a $1 million exemption equivalent (as originally scheduled under TRA 1997). Some of the more cynical planners have called this new tax law the "Assisted Suicide Act of 2010" when referring to the single year's true tax relief, although during 2010 the assets inherited lose their "step-up" at death for many families. Consult with your tax and legal advisors to best plan for ways to minimize unnecessary tax and uncertainty.
CONTACT US FOR A FREE
PRELIMINARY CASE STUDY FOR YOUR OWN CRT SCENARIO or try your own at Donor Direct. Please note -- there's much more to estate and charitable planning than simply running software calculations, but it does give you a chance to see how the calculations affect some of the design considerations. This is not "do it yourself brain surgery". When is a CRUT superior to a CRAT? Which type of CRT is best used with which assets? Although it may be counter-intuitive, sometimes a lower payout CRUT makes more sense and pays more total income to beneficiaries. Why? When to use a CLUT vs. CLAT and the traps in each lead trust. Which tools work best in which planning scenarios? Check with our office for solutions to this alphabet soup of planned giving tools.
Vaughn W. Henry
Henry & Associates
Gift and Estate
Planning Services
22 Hyde Park Place
Springfield, IL 62703 USA
Phone: (217) 529-1958 Fax: (217)529-1959
Toll-free: (800) 879-2098
E-mail: VWHenry@aol.com
CONTACT US FOR A FREE
PRELIMINARY CASE STUDY FOR YOUR OWN CRT SCENARIO or try your own at Donor Direct. Please note -- there's more to estate and charitable planning than simply running calculations, but it does give you a chance to see how the calculations affect some of the design considerations. Which tools work best in which planning scenarios? Check with our office for creative solutions.