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Current etate tax exclusion is $5 million (Thanks to a law signed by Obama). Above that the tax rate is 35% (and gradually increaing) of anount over $5M. Unless congress acts this year the exclusion drops nack to 2003 levels of $1M. However, most pundit think it will be set omewhere between $3-$5M. So a $7M estate would generate a tax burden of about $700,000 for someone who died in 2012..
Not to go PARF but it boils down to public policy decided years ago (like 80 years ago) that the transfer of wealth is viewed as a taxable event.
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Jim
1987 Carrera
2002 BMW 525ti
1997 Buell Cyclone cafe project
1998 Buell S1W: "Angriest motorcycle I've ever ridden."
Last edited by Dueller; 09-18-2012 at 06:55 AM..
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