2011 Federal Estate Tax Threshold Lowered Home Care Path

Beginning January 1, 2011 The Federal Estate Tax threshold will be lowered. Financial planners estimate after January 1, 2011 the Federal Estate Tax could impose a levy up to 55 percent on estates valued at more than one million dollars.

Seniors who reside in areas of high property value are particularly at risk. Larger metrpolitan areas families in the 60's may have bought a home for under 50 thousand, that is now valued in excess of 1 million dollars. Seniors that possess a home, an IRA or 401k retirement account, and some other savings and you can get above one million fairly easily.

Historically seniors have distributed excess wealth to family members while alive. But a senior who requires the house to live in may find it difficult to gift a portion of the estate to family members. Taking withdrawls from retirement plans can trigger income tax.

Back in 2009 Estate Planners expected Congress to reinstate the tax. The Federal Estate Tax changes go back to 2001 when Congress voted to gradually raise the estate tax exemption and cut income tax rates. This ended in repeal of the tax in 2010. The reduction in the estate tax ends 2010.

Seniors and families are dependent upon an act of Congress to see a Federal Estate tax with a higher threshold in 2011. Home Care Path www.homecarepath.com encourages readers to watch the evolution of this issue in the news.