Estate Tax

As of January 1, 2002, the estate tax exemption increased from $675,000.00 to $1,000,000.00, with a 55% overage tax rate. As of 2007, the estate tax exemption was raised to $2,000,000.00 with 45% overage tax rate, and is expected to rise to $3,500,000.00 in 2009 retaining the 45% overage tax rate. To complicate things further, in 2010, there will be NO estate taxes; and, in 2011, the estate tax rate will revert to $1,000,000.00 with an overage tax rate of 55%. Currently, there is no Texas inheritance tax.

Navigating the estate tax field can be perilous. Estate planning must keep pace with the laws as they change. It is a good idea to meet with estate planning attorneys at Garg & Associates to review your estate planning documents. It is also a good idea to have your CPA and other financial planning professionals work with your estate planning attorneys while you are planning and, certainly, well before the need for probate arises to determine if your estate plan has kept up with the frequently changing tax laws.

We invite you to contact us for a consultation. Call Garg & Associates, PC at 281-210-0010 or complete our contact form.