Estate Tax Changes for 2009 :

What's new, under the sun?

First, the good news: the Federal Estate Tax exclusion (the amount of assets an estate can possess without being required to pay Federal Estate taxes) rises from $2M to $3.5M in 2009.

Next, the bad news: the State Estate Tax exclusion (the amount of aseests a Connecticut estate can possess without being required to pay State Estate taxes) stays at $2M, and the "Cliff" (which was recently discussed on this site) remains.

This gap, or "decoupling", between the Federal and State Estate tax exclusion, can lead to the unfortunate situation of an estate being prepared to protect against the Federal Estate tax, but being subject to the State Estate tax. Older estates (drafted prior to 2003) are particularly succeptible to this problem, as, prior to "decoupling", it was relatively easy to plan for tax avoidance, simply by avoiding the Federal tax.

Now is a good time to consult with an experienced estate planning attorney to determine, and minimize, your estate's potential tax liability.

<< Next time: New president, new laws? >>

**********************************************************************************

Please take this quick, anonymous survey concerning your estate planning needs:

Click Here to Take Survey

Bookmark this page, and check in often, to keep abreast of the latest in estate law changes, as well as odd or interesting legal facts and trivia.