Estate Planning - Impact of the Tax Relief Act of 2001

Estate planning is more urgent than ever due to the uncertainty and complexity created by attempts to improve Estate taxation.

			Instead of repealing the estate tax under the new law, it will be phased out over the next nine years, be repealed in 2010 and automatically reinstated in 2011.
			The unified credit effective exemption amount for both estate and gift tax purposes is currently $1 million in 2002.
			The exemption from generation skipping transfer (GST) taxes is currently $1,060,000.
			The estate and GST tax exemptions will gradually rise to $3.5 million by 2009.
			The gift tax exemption remains constant at $1 million.
			In 2010, the estate and generation skipping transfer taxes are repealed.

What you can do:

			Review estate plans, including your life insurance.
			A Farmers Universal Life policy* may provide an ideal means of coping with the uncertainty associated with estate planning under this law.

Interested in learning more? Contact your local Farmers agent to find out more about how this new law impacts you.

*Issued by Farmers New World Life Insurance Company: 3003 77th Ave., S.E., Mercer Island, WA 98040-2890.

Form# FNWL020030

Back to Tax Relief Act of 2001