Obama's death taxes
and income taxes will take about 75% of your retirement account balance when you die.
In fact, the entire amount of the deceased spouse's wealth can be allocated to the CST without death taxes
, provided the death occurs this year, and provided Congress does not retroactively enact an estate tax applicable to the date of the client's death.
Clients with estates large enough to be concerned about death taxes
may very well have homes in different states.
Wise Trust and its trustee, National City Bank, which challenged the Ohio Department of Taxation (ODT) in the imposition of the additional tax in excess of the federal credit for state death taxes
allowable for federal estate tax purposes.
691 nor 1022 provides an adjustment to basis for state death taxes
paid on items of income in respect of a decedent (IRD).
State death taxes
have not been repealed or reduced.
The federal credit for state death taxes
is reduced by 25 percent each year from 2002 to 2004 and is repealed in 2005.
The 2001 Act phases out the state death tax credit over a four-year period beginning in 2002 and replaces it in 2005 with a deduction for state death taxes
If death taxes
are repealed, all of the other reasons for estate planning still exist.
Twenty states have eliminated their own death taxes
, often because voters were given a choice to retain or repeal them in referendums.
Additionally, effective January 1, 2000, New York's Gift Tax will be completely repealed, and beginning February 1, 2000, New York's estate tax will be equal to the federal estate tax credit for state death taxes
, thereby eliminating any separate New York estate tax burden for all estates.
There are federal taxes, state taxes and, yes, even death taxes