Wednesday, December 22, 2010

Live Fast, Die Young

I swear for as often as I log into my Mint account, you would think I have a lot of money there lol.  But tell me why my Facebook password is more cryptic than my password here?  Anyway I was reading their blog about minimizing your 2010 tax burden, since that's what old people do now.  How do I reduce my tax bill come April 15th?

I chuckled when I saw this suggestion:

10. Die

If you’re lucky to have enough assets to be eligible for the estate tax, remember that right now there is no estate tax. And if Congress doesn’t do anything about it until the end of the year, on January 1, 2011, estate tax will be back. Will Congress do anything? Maybe. The bottom line is, after the end of 2010, no one knows exactly who it is going to apply to or what the rate will be. Last year, people joked about hanging on a few more days until the tax expired. It turned out not to be a joke. I suspect this won’t be, either.

Totally makes sense.  Every time I fill out a tax form, they prompt you and ask "did this person die in this year?"  Dead folks gotta file taxes too.  However not as your tax advisor, I suggest you don't do this.  Leave it to your heirs to figure out.