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Paul is now part of the fourth generation in America that is involved in farming and hopes the next generation will be involved also. Through his blog he provides analysis and insight to farmer tax questions.
I was not sure if I would be able to write this post a month ago, but Congress and the President came through with some very good changes to the estate law. Beginning in 2011, the top rate will fall to 35% from 55% and estate will only be come taxable $5 million up from $1 million.
Another great addition is allowing spouses to transfer their pre-deceased spouse's unused exemptions. This allows couples to easily escape a $10 million estate from being taxed at the federal level. However, in most cases, states will continue to tax some estate tax on estates under these values.
Now for the drawback to the changes. It is only for TWO years. We will most likely be back in the same situation in late 2012 (of course an election year) and who knows what it will look like then.
We will keep you posted.