How Much Estate Tax Will You Pay?
Updated to reflect the latest 2010 Tax Bill
- I changed the unified credit to use the newly passed bill.
Me pay estate tax? No way, you say? Don't be so sure! I'm not talking about now, I'm talking about 20 or 30 years from now when your IRA or 401(k) grows really big and you have that $500,000 life insurance policy to protect the family. And sure the new 2010 Tax Bill raises the limit to $5,000,000 but that number may not seem so large if inflation continues! Also note that the new Tax Bill sets the estate tax limits and rates for 2011 and 2012. After that nobody has any idea what might happen. Expect another big congressional battle late 2012 to see what the estate tax will look like for 2013! And remember, unless you use a trust, your life insurance proceeds are added to your estate and may get hit with the estate tax! See for yourself:
Current IRA/401(k) Balance
IRA/401(k) Yield
IRA/401(k) Contributions/Year
from
to
After-Tax Investments
After-Tax Yield
After-Tax Contributions/Year
from
to
Life Insurance Face Value
Home Market Value
Mortgage Balance
Years Remaining of Mortgage
Mortgage Payment (Prin + Int)
Mortgage Interest Rate (%)
House Appreciation (%)
Cash/Checking Balance
Personal Property
Automobile Value
Automobile Loan Balance
Inflation
Annual Gifting
starting
Do you have a credit shelter trust?
No
Yes