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The Bush era tax cuts are expiring. Here are some of the key tax rates for 2010 and 2011:
2010 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.
Recently my son turned 18. In Connecticut this is considered the age of majority. In other words, he can make his own decisions. Well, that’s what the law says. However, he’s still living under my roof, so he’s got to deal with me. It’s probably more accurate, though, to say that I have to deal with him.
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.
Congress recently passed legislation to keep the federal estate tax exclusion at $3.5 million. Taxable estates would be taxed at 45%.
To get your estate planning documents prepared, you'll need a good estate planning attorney. Having a well thought out and properly documented estate plan is like having a parachute – it better work the first time or else. There is no estate planning version 2.0. Either version 1.0 works or it doesn't. It's simple…get it right the first time. OK, you can have lots of versions while you are alive; it's only the last version that matters.
Borgida & Company, P.C. | Manchester, CT 860.646.2465 • Niantic, CT 860.739.5459 • Storrs, CT 860.429.7885
