FAQ:

If my estate is under $2 million, do I have to worry about estate taxes?

For today, you will not have to worry about federal estate taxes if your estate is under $2 million However, this amount is changing throughout 2011.  In 2011 any estates worth more than $1 million will be assessed a federal estate tax.  Additionally, most people are unaware of everything that should be counted as part of their estates for tax purposes. In calculating the size of your estate, you must include the total value of your life insurance policy proceeds, all retirement plans, the fair market value of all real and personal property, and any inheritances. It is also important to consider the effects of inflation and future growth of your estate.

There is also the problem of the current law being changed by Congress or by the sunset provisions in the existing law, which could make your estate taxable in 2011 even if it is not taxable today.

Finally, if you are living in a state that has established its own estate tax, retire to such a state, or own real estate in such a state, you family could be subject to estate taxes.

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