Saturday, January 24, 2009

Did You Know?

Yesterday on "Did You Know" I told you that starting next year all estate's exceeding $1,000,000 will be taxed by the Federal government (a big change from $3.5m). Well, did you know that the government's slice of all proceeds over $1m will be 45%? 

For example, if a couple passes away and leaves their home valued at $350,000, $100,000 cash in the bank, and each have life insurance valued at $300,000 (which is pretty low) .... then the $50,000 that exceeds the million-dollar mark is taxed at 45%. That's quite a chunk to turn over to the federal government. 

If this is all extremely nauseating to you, do take heart .... there are estate planning tools and techniques that can be utilized to minimize the massive tax consequences that lots of people will begin to face. 

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