Death Tax Not Just for the Wealthy

Unless there is Congressional action the Estate Tax which went away for 2010, will resume with a vengence in 2011.

Starting in 2011, any estate valued at over $1 million will be taxed at the 55% rate. Due in full no later than 9 months after death.

The good news is that, if you are married, your spouse does not incur any estate tax obligation.

But bad news is that if you are single or widowed, all of your assets are eligible for the estate tax.

Many folks think: "But I don't have a million bucks... so I'm okay."

The estate tax does not just look as money in the bank. It includes, real property, bank accounts, investments, corporate and individual retirement plans, and insurance. For example:

• You home is valued at a modest $250,000
• You own a life insurance policy on yourself for $500,000
• You have $100,000 in an investment account
• You have a company 401(k) valued at $200,000
• Other personal property and assets valued at $50,000

Things add up quickly...

Guess what? Your kids will have to pay the Death Tax on amounts over $1 million.

As always, consult with your legal and tax professional for the latest in this...