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Heck, that's only 11%. Chances are most of us pay a higher tax rate.
There is currently a large exclusion on the portion of the estate that taxes are owed on & 50% or more rate on everything over that amount.
I can see both sides of the estate tax issue. It is a bummer for the government to get a chunk. On the other hand, if the deceased had sold off their assets prior to dieing they would have owed tax on their gain. The heirs basis for tax purposes is the value of the inheritance. They will only pay tax on any gain after they inherit.
Here's an example. If the deceased bought an ounce of gold in 1960 for $30 it would now have a value of $1690, a gain of $1660 that hasn't ever been taxed. When the heirs get that ounce their cost basis is $1690 & they will only be taxed on the amount over that if/when they sell.
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Posted 12/19/2012 4:00 pm
. Hopefully none & she is of kind heart & deserves it.
