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To: fanfan
Maybe yes, maybe no.

Ordinarily, an asset must be valued at its "fair market value " on the date of death (or alternate valuation date). If the samll business value is at least 50% of the value of the decedent's gross estate, it may qualify for "special use valuation" which, as of 2009, could reduce estate taxes by as much as $450,000.

There are catches, however.

101 posted on 12/03/2009 4:40:39 PM PST by Mr. Lucky
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To: Mr. Lucky; fanfan
If a parent leaves an insurance policy of $3.5 Million or more, the gov. takes 45% of the money.

Life insurance policies payouts are tax-free, since they are legally and financially considered an "equal value replacement". This is why life insurance is an essential part of the "rich and famous" estate-tax planning. Also explains why insurance companies, on average, but not vocally, are not in favor of eliminating estate tax.

107 posted on 12/03/2009 5:09:51 PM PST by CutePuppy (If you don't ask the right questions you may not get the right answers)
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