Estate Taxes Were Repealed

But Now They Have Now Returned

Estate Taxes and life insurance. Any person with any semblance of wealth, over $3,000,000, should die the Federal Government steps in and takes a hefty chunk of the estate for taxes.

This was repealed for a while but now you are again required to pay Taxes on your estate again. If your Gross Estate exceeds $5,000,000 it will likely to be subject to Federal Estate Taxes.

In order to avoid devastating such estates the knowledgeable people buy life insurance in the amount of the anticipated taxes.

This money would be used to pay the taxes assessed by the Federal Government.

There is nothing more important than your family's security. What would happen to your family if you died? Would they be provided for? Compare Quality Quotes and Save up to 70%! The process is Fast, Easy and FREE. Click Here To Learn More

Estate Taxes Kick In Upon Your Death

The Estate Tax law allowed for a deduction of $1,000,000 and the balance of your estate is taxed at the rate of 55%. This law had been repealed which had resulted in some people living under the assumption that they no longer need the life insurance policy that would be used to pay the amount assessed at death any more.

If they consulted their tax attorney or a knowledgeable accountant or life insurance agent they would realize that this assumption is far from the truth...

What the law actually did is to gradually reduce the percentage of estate taxes you would be required to pay by 10% by the year 2009 if your estate was at the top level...from 55% to 45%.

It also increased the amount of your estate exempt from these taxes to 3.5 million dollars by the year 2010. In 2010 there was no taxes due on your estate upon death but the law reverted to what it was originally by 2011...

If you therefore should die in any year other than 2010, and you have a large estate, Federal Taxes will be assessed and will be required to be paid. Bear in mind that the Government does not wait for it's money so a life insurance policy is still needed to pay this bill. Life insurance is the most cost effective way to pay amounts due.

During the years when less money was assessed by the Federal Government a higher Capital Gains tax was be taken from the heirs as the law stood. In other words these people were immediately thrown into a higher tax bracket than they were in before.

Furthermore, many people are not aware that some States have an Tax Law For Estates separate from the Federal Estate Tax. There goes another portion of your estate...though the amount is usually smaller than the Federal Tax.

Don't pay too much for life insurance! Shop and compare Quality Quotes from Quality Carriers first. Just answer a few quick questions then get your Quotes. The process is Easy and FREE. Click Here For Free Quotes

Life Insurance Quotes Estate Planning Death Taxes Term Life Insurance For Women Mutual Funds Affordable Life Insurance Financial Planning Whole Life Insurance Retirement Planning Cheap Term Life Insurance Mortgage Insurance Universal Life Insurance Long Term Care Insurance Disability Insurance Whole Life Insurance Quotes Cheap Life Insurance Term Life Insurance Quotation Life Insurance Companies Life Insurance Policy Term Insurance Affordable Term Life Insurance Burial Insurance Online Life Insurance Term Life Insurance Quotes Low Cost Life Insurance Life Insurance Rates Accelerated Death Benefit

Tools And Resources

Life Insurance Need Calculator

Recent Articles

  • follow us in feedly
  • Add to My Yahoo!
  • Add to My MSN
  • Subscribe with Bloglines
  1. Life Insurance - Reasons Why You Should Buy Now

    Should life insurance buying be seen as an urgent matter? There is something about some people that at times may cause them to procrastinate about matters that could end up being quite costly...

    Read More

  2. Affordable Term Insurance - Affordable Term Life Insurance Policy

    Let us talk affordable term insurance. You want a policy that can fit into your budget, right?

    Read More

  3. Advantages Of Whole Life Insurance - Advantages To Owning Whole Life Insurance

    It can be a very satisfying feeling when you become aware of the advantages of whole life insurance for the first time.

    Read More

  4. Best Term Life Insurance Rate - Learn Which Is The Best Term Insurance Rate

    The best term life insurance rate can be quite easily found on the internet today because web insurance companies have done intense research on behalf of the consumer.

    Read More

  5. Great 30 Year Term Insurance Policies Explained - 30 Year Term Life Insurance

    I recently did some research on the development of the 30 year term insurance policy over the years. What I learned was quite interesting.

    Read More