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Copyright 2001, 2002, Marc S. Weissman Weiss & Weissman, San Francisco, California (650) 574-0362 To Contact us: email Phone/Fax/Mail Homepage |
| Die in: | Death Tax Free Amount | Gift Tax Free Amount |
| 1997 | $600,000 | $600,000 |
| 1998 | $625,000 | $625,000 |
| 1999 | $650,000 | $650,000 |
| 2000 2001 | $675,000 | $675,000 |
| 2002 2003 | $1,000,000 | $1,000,000 |
| 2004 2005 | $1,500,000 | $1,000,000 |
| 2006 2007 2008 | $2,000,000 | $1,000,000 |
| 2009 | $3,500,000 | $1,000,000 |
| 2010 | NO TAX IF YOU DIE IN 2010 WATCH OUT FOR YOUR KIDS THIS YEAR | $1,000,000 |
| 2011 AND LATER | $1,000,000 | $1,000,000 |
Of course, a couple can double the tax free amount with a Living Trust.
If the law is not changed before 2010, once the death taxes are eliminated the step-up in basis will be allowed only for $1,300,000, plus
$3,000,000 left to a surviving spouse.
"Sunset" in 2011? The changes made
by the new law, including the "death tax repeal," will cease to apply after 2010; in 2011 it all goes back to the 2000 law! Further changes in the rules are almost a certainty.