Estates larger than $650,000 (in 1999) may face some potential tax consequences. This applicable exclusion amount, as it’s called, is set to increase over the next several years.The first $650,000 can go to your beneficiaries tax-free, but your heirs (excluding your spouse) have to pay income taxes on anything over that amount. If you have a large estate, you may want to ensure that more of your estate goes into your beneficiary’s hands, rather than to the government.
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