Seacrest wrote:
How much is the tax on $50K?
$0.00
After the estate tax was repealed for a year in 2010 (the final phase of the Bush tax cuts), the estate tax came back in 2011 with a floor of about $5 mil per individual, $10 mil per couple. This was renewed for 2012 at a slightly higher exemption level and was due to expire and drop back down to $1 mil per individual, $2 mil per couple this year, i.e., 2013. With anything above the exemption amount taxed at approx a confiscatory 40% level.
However, before that happened, Congress codified the $5 mil+ exemption into law somewhat permanently (this was part of the fiscal cliff deal, maybe back in December or February?)
I think it's up to $5.25 mil per individual, $10.5 mil per couple The couple thing is important in trust law. Not that they are expecting couples to drop dead simultaneously or even in the same tax year but a couple's heirs can take advantage of the higher exemption level by not transferring the estate to the ultimate heirs until the 2nd spouse drops, it is held in trust in the interim.