Monday, February 11, 2013
After much change over the past decade, the federal estate tax has finally become permanent. Tables from the Tax Policy Center show that, in 2013, fewer than 1 in 700 estates will owe the tax and they will pay a total of $14 billion, which is half of the revenue collected five years ago.
Most estates will now pass to heirs tax-free, so the higher 2013 tax rate does not effect the nearly 99.9% o estates exempt from estate tax. But those who are subject to the tax will have a significantly higher tax bill.
See Robertson Williams, Finally, A Permanent Estate Tax, Though Just for Wealthy Few, Forbes, Feb. 7, 2013.