Back in 2001, Congress changed the law on the establishment of taxes, creating estate tax exemptions that changed over the years. For example, in 2008, the exemption from federal estate tax will be at 2 million U.S. dollars. If you have one U.S. dollars more than this number, your are taxed at 45 percent plus, depending on the amount of overrun.

Under this law, the Federal Council approved the exemption amount in 2009 was to increase to $ 3.5 million and in 2010, the federal inheritance tax was abolished for a year. Even though your property may not be at the federal inheritance tax, if you were around in 2010, your estate is not a "reinforced" basis this year. In other words, your domain is "trade" of the federal estate tax on capital gains that in one year.

Because this bill today, in 2011, the Federal Republic of estate tax exemption is expected to return to the 1 million U.S. Dollar amount, with the highest tax rate at 55 percent. This means that many estate plans (wills and trusts) have to be reviewed to determine how the law applies and how much your property taxes would be subject. Of course, it would also mean that more goods would be at the federal level, estate taxes, when they happen.

Despite that there is only one year before the federal estate tax is repealed and then springs back with a $ 1 million exemption and a higher tax rate, Congress has failed to act. A few years ago there was a movement to abolish the federal inheritance tax as a whole, the idea was that a person paid taxes of many varieties all their lives and should have the opportunity to review their assets tax free to their children. Despite this fact, Congress, which this compromise and has failed to inheritance tax reform on the front burner.

This lack of action by Congress, that the people on a roller coaster for the supervision of the accounting volatility on an annual basis to determine how the law this year will apply to them. The conventional wisdom was that Congress would act sometime before 2010, reset the liberation, to reach a lasting reform. In March, some members of the Senate Finance set a budget decided that an amendment to freeze the estate tax obligation in 2009, which means that $ 3.5 million of real estate would be exempt (or $ 7 million for a couple if structured). The rest of the estate over the exemption will be taxed at 45 percent. There were a number of other proposals, some of which are more generous Federal estate tax exemptions.

Until Congress acts, be prepared to ride a roller coaster!

Denice Gierach is a lawyer and owner of the Gierach Law Firm in Naperville. She is a Certified Public Accountant and holds a master \ 's Degree in Management. You can reach deniceg@gierachlawfirm.com. For further information about Denice and The Gierach Law Firm visit Gierach Law Firm.