What is the 2007 Federal Estate Tax Exemption?
Federal Estate Exemption amount in 2007
Currently, for the tax year 2007, the federal estate tax exemption amount is $2,000,000 in 2007 and 2008. For the tax year 2009, this amount increases to $3,500,000.
Federal Estate Tax Rate for 2007
The highest federal estate tax rate is 45% in 2007-2009. The federal estate tax will be repealed on 1/1/10 until 12/31/10. Beginning 2011, the federal estate tax will be reinstated with a federal estate tax exemption amount of $1,000,000 and a maximum estate tax rate of 55%. Currently, bills are pending in Congress that, if passed, would permanently repeal or otherwise lessen the impact of the federal estate tax.
Due to potential changes in the estate tax laws, it is highly recommended that taxpayers consult an estate tax professional to properly for their estate planning.