It pays to die in 2010. Due to legislation passed during the Bush Administration, the tax rate on estates will go from a 45% tax rate in 2009 to zero in the year 2010, and then up to 55% for the year 2011. Therefore, for people with large estates - or people who may inherit a large estate - it would be advantageous to die in 2010 thus avoiding the payment of any estate tax.
However, if you would like to avoid such a drastic tax avoidance method, such as death, a properly drafted estate plan can help maximize your estate tax exemption (currently 3.5 million in 2009) and may reduce or alleviate any estate taxes that your heirs may have to pay upon your death.
If you are considering estate plan, email Sharon Anderson at sanderson@coronalaw.com for more information about setting up your estate plan or call our office directly at (951) 734-6371.
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