|
|
The Estate Tax Rates
|
Year |
Rate Range |
Estate & GST Exemption |
|
2002 |
41 to 50% |
$1 million |
|
2003 |
41 to 49% |
$1 million |
|
2004 |
45 to 48% |
$1.5 million |
|
2005 |
45 to 47% |
$1.5 million |
|
2006 |
45 to 46% |
$2 million |
|
2007 |
Flat 45% |
$2 million |
|
2008 |
Flat 45% |
$2 million |
|
2009 |
Flat 45% |
$3.5 million |
|
2010 |
Repealed |
N/A |
|
2011 |
41 to 55% |
$1 million |
Gift Taxes
Gift taxes are not repealed in 2010.
In addition, the gift tax exemption is limited to $1 million.
See table below.
|
Year |
Rate Range |
Gift Tax Exemption |
|
2002 |
41 - 50% |
$1 million |
|
2003 |
41 - 49% |
$1 million |
|
2004 |
41 - 48% |
$1 million |
|
2005 |
41 - 47% |
$1 million |
|
2006 |
41 - 46% |
$1 million |
|
2007 |
41 - 45% |
$1 million |
|
2008 |
41 - 45% |
$1 million |
|
2009 |
41 - 45% |
$1 million |
|
2010 |
Individual Income Tax Rate |
$1 million |
Generation Skipping Tax
The GST is imposed on transfers, either directly or through a trust or similar arrangement, to a "skip person" - i.e., a beneficiary in a generation two or more below the transferor.
The GST is imposed at a flat rate equal to the top estate tax rate on cumulative transfers in excess of an indexed $1,000,000 exemption ($1,160,000 for 2003).
Proper allocation of the GST exemption is very important.
|
Year |
Rate Range |
Estate & GST Exemption |
|
2002 |
41 to 50% |
$1 million |
|
2003 |
41 to 49% |
$1 million |
|
2004 |
45 to 48% |
$1.5 million |
|
2005 |
45 to 47% |
$1.5 million |
|
2006 |
45 to 46% |
$2 million |
|
2007 |
Flat 45% |
$2 million |
|
2008 |
Flat 45% |
$2 million |
|
2009 |
Flat 45% |
$3.5 million |
|
2010 |
Repealed |
N/A |
|
2011 |
41 to 55% |
$1 million | |