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|Subject: Re: Estate / death taxes: was my grandfather foo||Date: 4/14/2008 11:31 AM|
|Author: ptheland||Number: 62256 of 75781|
... an estate we're figuring was about $4 million. ... his estate will be owing $2 million?! (first 2 million is exempt from federal tax, then, what, almost 1/2 to the gov't ...)
I think you overestimate the taxes. You've got the right rates and figures, but aren't applying them correctly.
The first 2 million is exempt from Federal estate taxes. But it's the only the amount over that that gets taxed. So you're looking at about $1 million in federal estate taxes, not $2 million. Plus your state taxes, if any.
is the person paying millions in estate taxes the norm or exception?
The exception. Most people die with estates well under the current $2 million threshold for paying estate taxes.
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