Death, Taxes and Uncle SamPosted on January 13, 2009 in Arizona Law Regarding Business and Real Estate
At the Law Firm of William A. Miller in Phoenix we manage a number of high-profile estates. On Jan. 1, the amount exempted from federal estate taxes rose to $3.5 million from $2 million, which means that estates at or above the new limit would save $675,000 in estate taxes (at the 45% rate) compared to last year. So, party on, trust fund preps, heirs and heiresses. But wait, this may all end sooner than expected.
Under the current law, the estate tax is scheduled to disappear altogether in 2010, so the heirs of millionaires who go to their reward next year stood to inherit everything without Uncle Sam taking a cut on any of it.
While that is how the law stands, the notion of uber-rich being able to pass on their millions tax-free never squared with common sense reality. Of course, there are good arguments against the so-called death tax, especially that it taxed income twice; first when it originally was earned, then when it was saved and invested over time.
We are more than happy to help you properly plan your Estate at the law Firm of William A. Miller. Give us a call at 480.948.3095.