George Steinbrenner had an estimated $1.15 billion dollar estate when he died July 13, 2010.
George Steinbrenner’s heirs will pay no estate tax. Zero. Nada. Nil.
Why? Because Bush made it so with his 2001 tax cuts and Congress can’t get its shit together to close the one year loophole. Had Steinbrenner died last year, his estate would have been subject to a 45% tax rate. The rate goes up to 55% next year but is 0% for 2010.
So the take-away is if you’re feeling poorly and have a gazillion dollar estate, make sure to die before midnight on December 31, 2010. Unless you don’t like your heirs, in which case by all means hang on until 12:01am January 1, 2011, to sock them with the 55% estate tax.
Hat tip to G for sending me the Steinbrenner article that reminded why I love tax work: because it makes no sense whatsoever.
