I need information on estate tax?

Question

I need examples on people who are affected by estate tax and people who are affected if there is no estate taxes. I also need sources

Answer 1

From the source below:

The Economic Growth and Tax Relief Reconciliation Act of 2001 (http://thomas.loc.gov/cgi-bin/bdquery/z?d107:HR01836:) provided for ten years of increasing exemptions from the estate tax. In 2005, the law exempts the first $1.5 million of an estate for an individual (or the first $3 million for married couples). The law includes a sunset clause for the estate tax to be restored in 2011. Currently, there is legislation in Congress that proposes making the full repeal of the estate tax permanent. The bill, H.R.8 (http://thomas.loc.gov/cgi-bin/bdquery/z?d109:h.r.00008:), passed the House of Representatives on April 13, 2005 and is waiting for a final vote in the Senate.

Answer 2

The current exemption from estate tax is $2 million per person or $4 million for a married couple. Some people don't do any tax planning and get caught on the second death of the couple. with very simple planning this could be avoided. The exemption is scheduled to go up to $3.5 million per person in 2009, meaning $7 million per couple.
Currently less that 1% of the population pays estate tax and this would drop further at the $3.5 million exemption. Essentially the only people that would pay estate tax are the people pushing to do away with it. Small businesses very seldom have a value of $4 million, same for the small farmer If anyone in this group pays an estate tax it is again because they had their head stuck in the sand and didn't do any planning at all.
I would think the best source for you to learn more would be to go to IRS.GOV and look for an IRS publication about the estate tax.

Answer 3

each State has a different basis, and of course Federal tax guidelines would be the same everywhere.

Lineal heirs and spouses would be exempt from most inheritance tax. Collateral heirs, including siblings, would not be tax exempt.