The inheritance tax used to be $650,000. About ten years ago, Congress raised it to 3 million. It is a “sunset” law or “a ten year law”, which means if Congress does nothing, the 3 million will revert back to $650,000 before the fiscal year ends about August 2010.
Chances are under the present “we need your money Congress”, no action will be taken so they can return to taxing any inheritance you leave over $650,000 at a rate of 55%. It is a perfect opportunity for them not to do anything and increase revenue while most people are unaware of this sunset law.
If this concerns you, you may want to google inheritance tax law sometime about August, as congress’s fiscal year is Sept. to Sept.
You may even want to write to your congressman and pass this information on to friends. There are a lot of lawyers and CPA’s that do not want congress to act as they will benefit by the work it will generate for them, setting up bypass trusts, etc.
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