Mark Knows It All

As an attorney, and one who deals to large degree in estate planning and probate, I am often asked the best thing a person can do to plan for the financial well being of his/her family after death. The answer is simple. Die before December 31, 2010. Because after that, you’re screwed! People think that the estate tax is something only the rich have to worry about. That depends on your definition of “rich”. Ten years ago, the estate tax was 55% of everything over $1million. That’s right. 55%. Now a million dollars sounds like a lot of money, and it is. But get out of the Youngstown area, where even in down real estate markets the average price of home is in excess of $250,000.00, it really isn’t. For family farms it is even worse. And it is downright terminal for small businessmen who employ several people. In the old days, the farm and business had to be sold in order to pay the taxes. Imagine. 55% of every already taxed dollar you saved or invested taken by the government. So the Repu