Understanding Life Insurance Trusts
How to Reduce or Eliminate Your Estate Tax Cost
3. Who has to pay estate taxes?
Your estate will have to pay estate taxes if its net value when you die is more than the "exempt" amount set by Congress at that time. Here is the current schedule:
Year of Death.........Estate Tax "Exemption"
2008...........................$2 million
2009...........................$3.5 million
2010.......................N/A (repealed)
2011 and thereafter..........$1 million