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"These proposals are progressive, with lower value estates lifted out of paying any fee at all and other estates only paying more as the value of estate increases.
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The value of estates over $5 million would be taxed at 40 percent, up from 35 percent.
Gifts to Children Gifts to minors have long been a favorite method of transferring wealth to reduce the value of estates.
On the estate tax, Mr. Obama wanted to subject the value of estates over $3.5 million to a 45 percent tax, higher than the 2012 level of 35 percent on estates over $5 million.
The value of estates between $10 million and $50 million would be taxed at 50%, while assets up to $500 million would face a 55% tax.
The rate on the value of estates above $10 million and below $50 million would be 50%, and the rate on the value of estates above $50 million would be 55%, the top rate in 2000.
Such untaxed gains account for more than half of the value of estates worth more than $100 million, according to the Center on Budget and Policy Priorities.
Specifically, effective 2016, Congress should restore the estate tax to its 2000 level: an exemption of $1,000,000 (the 2000 exemption amount - $675,000 -- in projected 2016 dollars), with a top marginal rate of 55percentt on the value of estates in excess of the exemption amount.
When calculating the value of an estate for federal estate tax purposes, please note that there are special rules for decedents who died in 2010.
However, doing so will increase the value of your estate and could cause family members to pay higher estate taxes.
The gross estate includes assets like cash, securities, annuities and the fair market value of real estate and businesses.
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CEO of Professional Science Editing for Scientists @ prosciediting.com