Depressed asset values may offer good opportunity for estate planning.

When President Barack Obama submitted his budget blueprint to Congress on February 26, 2009, within its 140 pages appeared the administration’s proposal for estate taxes. If approved, the budget would freeze the estate tax exemption at the current level—$3.5 million per person, with the maximum tax rate of 45%—from 2010 on. According to Blaise M. Sonnier, assistant professor, School of Accounting in the College of Business Administration, now could be a prudent time for individuals to review their estate plans and consider transferring property—including real estate, stocks, bonds, and other investments—to their heirs.

“In 2000, the first $600,000 of property owned by a person was exempt from the federal estate tax,” he said. “In 2001, the amount was increased to $675,000, and it gradually increased to its current level of $3.5 million per person, which became effective on January 1, 2009.” Read more.

Sphere: Related Content