Living Trust
Estate Taxes
Federal Estate Taxes are imposed on the transfer of assets from a deceased person to anyone other than his or her spouse. The IRS provides an exemption and only taxes the estate in excess of the exemption amount
Year |
Exemption |
Max Tax Rate |
2002 |
$ 1,000,000 |
50% |
2003 |
$ 1,000,000 |
49% |
2004 |
$ 1,500,000 |
48% |
2005 |
$ 1,500,000 |
47% |
2006 |
$ 2,000,000 |
46% |
2007 |
$ 2,000,000 |
45% |
2008 |
$ 2,000,000 |
45% |
2009 |
$ 3,500,000 |
45% |
2010 |
unlimited |
No Tax |
2011 |
$ 1,000,000 |
50% |
A Will that leaves all assets to a surviving spouse outright will lose the available exemption for the deceased spouse. A Living Trust may help married couples minimize or avoid estate taxes through the use of “Credit Shelter” provisions in their Living Trust. This allows both spouses to maximize the exemptions available.