There has been a federal estate tax in the United States since 1915 – in 2010, it is gone, says a New York Estate Lawyer. The tax cuts signed into law by George W. Bush in 2001 increased the estate tax exemption to $3.5 million and reduced to the top tax bracket to 45% in 2009. The estate tax in 2010 is zero. It’s only temporary, however. The law will expire on December 31, when it goes back to a $1 million exemption and a 55% top bracket.
In truth, there are not a lot of American’s, relatively speaking, who ever have to worry about an estate tax, according to New York Estate Lawyers. Nor is it a big source of revenue for the government. The higher number of exemptions has caused the number of taxable estates to drop from 2% of adults dying in 2001 to less than a quarter of 1% in 2009. In the past decade, estate taxes counted for about 1% of all taxes, or about $22 billion. Some predict, it the current law remains, the yearly estate tax collection could rise over $60 billion in less than 10 years.
One change that isn’t so great for those who stand to inherit this year is the change to what is known as carryover basis. Before, property left to heirs would be “stepped up” to whatever it was worth today. An attorney told a New York Estate Lawyer that carryover basis meant: “If you inherit a house or stock from Grandma, you have to figure out what she paid for it. Determining the original cost basis is a horrible job. The burden is on the taxpayer.”
Times are changing in the financial world. Keep ahead of the changes with a New York Estate Attorney. There is no one better than a New York Estate Lawyer to keep your financial matters firmly in hand.
The law offices of Stephen Bilkis & Associates has caring New York Probate Lawyers that can help you plan your estate. Our New York Probate Lawyers can help you probate an estate, write a will or set up a trust. We have convenient offices in New York City, Brooklyn, Queens, Bronx, Suffolk and Nassau County. We want to help you through what may be a difficult time with as little problems as possible and offer a free consultation at 1-800-NYNY-LAW (1-800-696-9529). Call us today to take advantage of this free consultation and speak to a New York Probate Lawyer from our firm.