Washington is adding yet another layer of uncertainty to estate taxes with the lack of action in the Senate. But on January 1, 2010 all of your PlanLab® applications showing death in 2010 or later will reflect all of the estate tax provisions according to the current laws!
You don’t need to do a thing.
PlanLab® was previously programmed to illustrate the laws as written for 2010, 2011 and beyond:
- No federal estate tax in 2010
- Limited step-up in basis for 2010 deaths
- Step-up of $1.3 million in property from a decedent
- Step-up of certain transfers to spouse up to $3 million but not available for all assets
- Gift tax maximum no greater than income tax highest rate
- Reversion to pre-2001 Tax Act in 2011
- These are just the main points, but all provisions are included.
If the first death occurs in 2010 and the spouse sells inherited property later, PlanLab® with its true cash flow calculations will reflect the capital gains and subsequent estate taxes correctly. You can show the effects of the current legislation. PlanLab® Analysis programs all illustrate true cash flow, including:
- Estate Tax Analysis
- Wealth Distribution Analysis
- Retirement Test Drive
- Financial Needs Analysis
- Financial Strategies
- Wealth Strategies
PlanLab® Conceptual programs like Estate Tax Concepts and Family Limited Partnership illustrate the estate tax rates correctly but do not provide cash flow details.
You can count on your PlanLab® illustrations to provide the proper estate taxes with certainty, even as Congress continues their uncertainty! And when new laws are signed, PlanLab® will be among the first to provide updated illustrations.