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Ask many people if they have an estate plan and they just roll their eyes. With the Federal Estate Tax Exclusion at $5.12 million most people will not be subject to estate taxes. In Connecticut, the exclusion is $2 million and many people won’t be subject to this tax. So…why do I need an estate plan?
With the Federal Estate Tax Exclusion of $5 million, many commentators have suggested estate planning is dead. I think this deserves a closer look.
The Bush era tax cuts are expiring. Here are some of the key tax rates for 2010 and 2011:
Ordinary Income 35% 39.6% Long Term Capital Gains 15% 20% Qualifying Dividends 15% 39.6% Estate Tax 0% 55%
Unless Congress decides to do something different, we are stuck with these tax rates. The numbers may need a little explanation.
Mr. Dan Duncan passed away in March of this year. It is estimated his net worth was $9 billion, making him one of the top 100 most affluent people in the world. A self-made man, he amassed his fortune in energy. He was also very philanthropic, giving away hundreds of millions of dollars.