05/02/2008   English German
  Edition # 74  
San Francisco, 05-02-2008

Die without inheritance tax in the year 2010
Figure [1]: The taxes on an estate will be eliminated in
2010.>

Michael Just like in Germany, heirs must pay inheritance tax, the so-called "Estate Tax," on an inheritance. However, there is an exemption limit set at 2 million dollars.

Surviving spouses are exempt from the estate tax. However, this does not apply to people who are not American citizens. This is the reason why many green card holders eventually apply for American citizenship, even though it offers few advantages other than the ability to vote. By the way, the Germans have a... Agreement with theAmericans The phrase translates to: "which in the year 2006 grants an exemption of $2,000,000 between German/American and German/German spouses.

The above-mentioned exemption limit for Americans of 2 million dollars, for example when someone bequeaths money to their children, only applies in the year 2008. Next year, 2009, it will be temporarily raised to $3.5 million, and then in the following year, 2010, it will be completely eliminated.

And now comes the kicker: In 2011, it returns with an exemption limit of only one million dollars! So if the American Congress does not come together and pass a new law for the Estate Tax, also known as the "Death Tax," dying in 2010 will be cheaper than ever before. One can easily imagine the societal impacts this could have, and it is hoped that the government will promptly avert this.

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