EVERYTHING A BABY BOOMER SHOULD KNOW -- An Insider's Guide To Estate Planning
The Capital Gains Tax May Replace The Estate Tax
If you are wondering who is responsible for this generous change in tax laws, it was President George W. Bush. But before you give him a big pat on the back, consider that if Congress does nothing before the year 2010, it is anticipated by many professionals that the capital gains tax will replace the estate tax. This means that the $200,000 mortgage on your $2,000,000 house will “carryover” to the heirs of your house.
As it stands now, the house’s value is reappraised at death and its cost basis is “stepped up” to $2,000,000 (fair market value) for the heirs. If your son or daughter sells the house they pay no income tax.
But in 2011 the house will not “step up” in value at death and your son or daughter inherits the $200,000 cost basis. If they sell the house they pay taxes on $1,800,000.
There's much more...
An Insider's Guide to Estate Planning
THE NEWEST APPROACH
TO ESTATE PLANNING:
KNOW WHAT YOU’RE TALKING ABOUT!
Why pay money so an attorney can try and explain the difference between a Bypass Trust and a QTIP Trust, when this book will answer that question long before you have to pay for a consultation?
This guidebook helps you map out your estate plan so it goes exactly where you want it to go. It explains the tools you need to give away or preserve your money, homes, businesses, heirlooms, cars, boats, jewelry, tools, art, memorabilia, and every other artifact of life you have accumulated over the last 45 to 65 baby booming years.
(Proud Father of the Bride)
Mark S. Cornwall, Esq.
210 E. Figueroa Street
Santa Barbara, CA 93101