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Copyright 2011 Marc S. Weissman Certified Specialist: Estate Planning, Trust and Probate Law Certified by the California Board of Legal Specialization of The State Bar of California Weiss & Weissman, San Francisco, California (650) 574-0362 To Contact us: email Phone/Fax/Mail Homepage |
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This Article is designed to be of general interest. The specific techniques and information discussed may not apply to you. Before acting on any matter contained herein, you should consult with your personal legal adviser.
HOW MUCH money does the US Government collect from death taxes?
In 2001, the tax free amount was $675,000. For people who died that year, only about 50,000 were rich enough to owe tax, and they paid a total of almost $24 billion.
In 2009, IRS estimates are that with the tax free amount at $3,500,000, only 7,200 decedents owed tax: $16B was paid by them. This was less than 1% of the Federal Revenue for the year. [Actually, 0.7% of the Federal Revenue for the year.] Doing the math, $16,000,000,000 / 7,200 = an average of $2.2M tax per family. At 45% that means nearly $5M is taxable, above $3.5M tax free. Conclusion: in 2009, 7,200 people died with average net wealth of about $8.5M.
Of course, in 2010, no one paid any tax as the free amount (if the optional election was made) was unlimited.
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