by Tom Dayton
About 30 years ago the 110 acre Link Farm, in Copley, was sold for a housing development called Rosemont Ridge. At that time the
exemption from federal estate taxes was only $600,000.00. Mrs. Richards, their daughter, told me that they just could not afford to keep her parents land intact due to the estate taxes.
Today, things are much different. The exemption from federal estate taxes is 12.06 million, for a couple, and indexed to inflation similar to what Ronald Reagan explained on television.
Before the federal government would benefit from what is known as bracket creep when all it was inflation. The exemption rate for an individual is 5.9 million and indexed for inflation for estate taxes.
Past Summit County Farm Bureau President, Tim Walsh, claims that depending upon the location, the couple exemptions could be accurate for a 500 acre farm, farm house and equipment.
In early September, Anthony Gonzales said that the federal estate tax would not be eliminated entirely but rather a compromise comparison would have to be made at a much higher level. The levels presented today are much better whether for an individual or a couple.
While estate taxes are here to stay, then with the rate to inflation, hopefully will be enough.