As of January 1, 2011, the estate tax is being reinstated. Read about it here. Basically this means that for people who die with more than $1 million, up to 55% of the value of your estate beyond that $1 million can be taxed. This year, 2010, the estate tax liability was 0%. Yes, 0. Next year, 55%!! Financially speaking, 2010 is the year to die!! (Unless of course, Congress acts to avoid the 55% tax hike...)
So, let's get to the nitty gritty - if you die ON or BEFORE Dec. 31, the tax liability on your estate is $0. Your heirs get all of your money. BUT, if you die even ONE MINUTE after midnight on Dec. 31, 55% of your estate is taxed! (As long as your estate is worth more than $1 million - you'd get the first million with no tax liability.)
Does this worry anybody??? I mean, yeah, it's worrisome in that MORE THAN HALF of your estate will be taxed starting next month. And this is probably one of the biggest, if not the biggest, tax hike in US history.
But there's another worrisome "side effect" here I think - heirs of extremely rich people have so much more hanging on their wealthy benefactors' lives. And if those benefactors are already ailing, aren't you afraid that there's even more incentive to give them a little nudge into the glorious afterlife??? How many old wealthy folks are going to die on Dec. 31!?!?!?!?! OR, how many old wealthy folks are going to be tempted to assist themselves to the afterlife?!?!?!?!
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1 comment:
Still funny.
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