When Is an Estate Subject to Federal Estate Taxes?
If on the date of your death your estate exceeds the applicable exclusion amount, your estate may have to pay federal estate taxes. The exclusion amount depends on the year of death and is as follows: (i) $2,000,000 in 2008, (ii) $3,500,000 in 2009, (iii) no estate tax in 2010, and (iv) $1,000,000 for people who die after 2010. If an estate is subject to federal estate tax, the value of the estate over the applicable exclusion amount is taxed at the rate of 45 percent through 2009 and 55 percent after 2010.
If on the date of your death your estate exceeds the applicable exclusion amount, your estate may have to pay federal estate taxes. The exclusion amount depends on the year of death and is as follows: (i) $3,500,000 in 2009, (iii) no estate tax in 2010, and (iv) $1,000,000 for people who die after 2010. If an estate is subject to federal estate tax, the value of the estate over the applicable exclusion amount is taxed at the rate of 45 percent for people who die in 2009 and 55 percent for people who die after 2010.
