I heard that the estate tax is being repealed. Do I really need to plan for estate taxes in my will?
October 6, 2006
This is another common misconception that is spread around (and quite frankly asked about by my clients in our initial estate planning conferences).
Estate planning is actually more important than ever because of the complexity and uncertainty created under the 2001 changes in tax laws. Instead of repealing the estate tax, the estate tax is gradually phased out over the next 4 years. In 2010, the estate tax is repealed-for one year. In 2011, the estate tax is reinstated at the 2002 level (the exemption level that year will be $1 million).
Because of insurance payments, the last 20 years of the stock market, and increasing property values, it is pretty easy to get over the estate tax threshold. Thus, planning for estate taxes is still a primary concern when creating a will.
