Estate Tax Rate for 2011, 2012

How High Does the Estate Tax Rate Go?

Estate tax planning is a very important part of protecting your wealth for your family’s future. It is important to know how much your estate may be taxed in the event of your death.

Estate taxes can easily reach a tax rate of up to 55%. Estate tax rates begin at estate values above $3,500,000.00 and will begin to be taxed on the excess value of the estate. The excess will begin to be taxed at around 18%.

Estate Tax Rates Increase in 2% Increments

This amount will increase in about 2% increments as your estate value increases. The highest estate tax rate is around 55% for estates valued at over $3,500,000.00.

If you have done some pre-planning, then you could avoid some of this tax by gifting some of your estate and money to your heirs. If you do not, then the first $3,500,000.00 of your estate can be passed to your heirs but anything over that will be taxed.

Estate Taxes are due Within Nine Months After Date of Death

These taxes are due almost immediately. The IRS only allows around nine months for these taxes to be paid after the time of death. This can cause family members to have to sell property quickly in order to pay the taxes due.

After the year 2010, the estate tax rates are going to change and the amount of $3,500,000.00 will potentially drop to $1,000,000.00 for the exclusion amount unless congress takes action.

Tax Articles and Advice for Estate Tax Rates and Inheritance Tax Forms

If you have inherited some sort of estate that exceeds the amount allowed, we recommend using an online tax preparation service that can help you file the correct forms. TurboTax Online offers free tax advice that can help you avoid costly errors and get you the biggest refund possible.