Tuesday, November 3, 2009

No Estate Tax in 2010 - What Does It Really Mean?

I'm studying about revocable living trusts and am wondering what the gov't has up its sleeve in 2010 having completely repealed the estate tax that year. What this means is that when someone dies, there is usually an estate tax due upon death if it exceeds the minimum cap. For instance, in 2009 the personal estate tax exempt amount jumped from $2 million estates and above to $3.5 million estates and above.

For some peculiar reason, in 2010 it doesn't matter how large the estate is, there is ZERO estate taxes due that year. The following year in 2011, the estate size cap is lowered for those estates just $1 million and above. This means any estate over $1 million will be subject to an estate tax. It doesn't take much effort to have an estate worth $1 million considering real estate prices are so high these days. A modest home can easily be worth nearly $1 million, and then there's the 401(k) plans!

One can only speculate what those in government are aware of and possibly have planned for Americans in 2010. Perhaps they're preparing for massive deaths from the swine flu vaccinations they're incrementally unleashing on a mass scale. Maybe the former eight year Republican administration wanted to protect the extremely wealthy from having to pay any taxes knowing many would be dying. It seems so illogical that each year some random financial numbers are used to determine who pays estate taxes. What could possibly be the reasoning behind the 2010 year of no estate taxes?

According to many reliable sources the likes of the Trend Research Institute's Gerald Celente, 2010 is going to be a pivotal year for America. Many are predicting America's potential collapse into the North American Union (U.S., Canada and New Mexico). I think 2010 is going to be interesting and probably terrifying as well.