The death tax (a.k.a., the federal estate tax) is a tax applied to the transfer of a person’s assets at death. It is defined by the Internal Revenue Service as “a tax on your right to transfer property at your death.”[1]
Under current law, the estate tax was repealed for one year on January 1, 2010. On January 1, 2011 the estate tax is set to return at a rate of 55 percent on all assets above a $1 million exemption amount. See “The Current Fight” for more information.[2]
The estate tax is imposed on any and all life-savings. This includes:
The estate tax is paid by the recipients of an inheritance – most often family heirs – and is due within 9 months of the decedent’s death. If the heirs do not have sufficient cash, personal property and business assets must be sold to pay the tax.
In the case of family business owners and farmers, the tax often exceeds the ability of the family to pay. These heirs are consequently forced to sell off part, if not all, of their enterprise in order to pay the tax.
See “Repeal the Death Tax” for further explanation of how the death tax destroys family businesses, farms and jobs.
Do your candidates support permanent estate tax repeal?
Visit the Death Tax Repeal Pledge Tracking Center to see if they signed the pledge!
The Death Tax fight will soon be decided in the halls of Congress by your representatives. AFBI is leading the fight for repeal in Washington, but we cannot do it alone.