Phase Out of Federal Estate Tax

The Economic Growth and Tax Reconciliation Act of 2001 (EGTRRA) phases out the federal estate tax through 2009 and repeals it for 2010.  EGTRRA expires, however, in 2011, and Congress extended the income tax rates and the estate tax has been restored, but only until 2012.  The main elements of the phase out are a cap on the top estate tax rate and an increase in the exemption amount, as shown below:

Year                            Top Estate Tax Rate                                      Exemption Amount

2001                                        55%                                                                 $675,000

2002                                        50%                                                                 $1,000,000

2003                                        49%                                                                 $1,000,000

2004                                        48%                                                                 $1,500,000

2005                                        47%                                                                 $1,500,000

2006                                        46%                                                                 $2,000,000

2007                                        45%                                                                 $2,000,000

2008                                        45%                                                                 $2,000,000

2009                                        45%                                                                 $3,500,000

2010                                        0                                                                      N/A

2011                                        35%                                                                 $5,000,000

2012                                        40%                                                                 $5,000,000

2013-current                        40%                                                                $5,250,000

PROBATE FEES - CALIFORNIA

 Gross Estate                          Fees

$100,000                                 $6,300                         Residence                            $                                 

$200,000                                $10,300                       Other Real Estate              $                                  

$300,000                                 $14,300                       Stocks                                   $                                 

$400,000                                 $18,300                       Bonds                                    $                                 

$500,000                                 $22,300                       Furniture/pers. prop.      $                                 

$600,000                                 $26,300                       Bank Deposits                    $                                  

$700,000                                 $30,300                       Other Property                  $                                 

$800,000                                 $34,300

$900,000                                 $38,300                       Total Estate Value             $                                 

$1,000,000                              $42,300

$1,500,000                              $52,300

$2,000,000                              $62,300

Does not include extra-ordinary fees for selling real estate.

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