How Much Estate Tax Will You Pay?
Me pay estate tax? No way, you say? Don't be so sure!
I'm not talking about now, I'm talking about 20 or 30 years from now when your IRA or 401(k) grows really big and you have that $250,000 life insurance policy to protect the family. And sure the new 1997 Tax Bill raises the limit to $1,000,000 but do you realize how slowly that happens? And do you realize how many people will be "estate millionaires" in 20 or 30 years? It will be a middle class phenomenon. Let's just hope they increase the unified credit by then. Stick in the numbers and see for yourself. And remember, unless your life insurance beneficiary is a trust, it is added to your estate and may get hit with the estate tax! See for yourself: