Hang in There

As we approach the end of the year, it is worth noting that January 1, 2009 is a significant date for federal estate tax purposes. The "tax-free" amount, which is the amount an indvidual can pass estate tax free to his or her family, jumps from $2,000,000 to $3,500,000. The financial results for a family can be significant, as any assets over the tax-free amount are taxed at a roughly 45% rate. There may be some families that try to delay the enforcement of a living will until 2009. It is a shame that families may have to think about taxes in making those decisions, but unfortunately it is a result of the current tax law structure.

For the rest of us, such a significant tax law change may warrant a review of our current estate plan.