The credit for estate tax for individuals passing on in 2009 is $1,455,800. However, this credit cannot exceed the estate tax imposed. The effect is to exempt up to $3,500,000 in value of the property that you own as of the date of your death. A transfer tax liability may be owing on amounts that exceed this figure. If this tax applies, it will be steep. The maximum tax rate that will apply in 2009 is 45 percent!

There is no estate tax in 2010, but the estate tax act “sunsets” in 2011 and the estate tax will reappear with only an applicable credit of $345,800 and an exclusion amount of only $1,000,000. This is of course, unless Congress acts before this occurs.

Under prior law, the same unified credit amount applied to both the gift tax and the estate tax.  This is not the case under current law; however, the unified credit against taxable gifts remains at $345,800.   The effect is to exempt up to $1,000,000 in value of the property from tax in 2009, while the unified credit against estate tax increases during the same period.

Notwithstanding the “resurrection” clause in the new law, the changes to the law are significant, and every estate plan should be reviewed in light of these changes.

As a Certified Public Accountant (CPA), Certified Valuation Analysis (CVA), Certified in Financial Forensics (CFF) and Dipolmate of the American Board of Forensic Accounting (DABFA) Mr. Golden and his professional staff have extensive experience, knowledge and specialized training with accounting, financial statement analysis and tax issues required to properly perform the job for you. We provide personalized responsive service.
Please give Mr. Golden a call to set up a free initial consultation to discuss your tax & accounting needs.

A.M. Golden Accountancy Corporation offers a free initial consultation - To speak with Mr. Golden immediately, please call his direct line by dialing (760) 444-1913.  If you’d prefer, you may also send an email: al@amgolden.com