History of Estate Planning and Trusts

As part of the new tax plan, Congress has once again said "no" to the federal estate tax. In 2010, it will be repealed. This change is the latest chapter in the federal government's long history of enacting and repealing estate taxes. There are big changes on the fiscal horizon, but they've happened before.

Calculate My FREE Annuity Quote Now!

  • Optional: For a 2-person annuity (joint lives)

No agent will call you

Your privacy is guaranteed.
Find advanced calculator options here.

Get quick answers to your annuity questions: Call 800-872-6684 (9-5 EST)

1797 Beginning of Estate Planning

The Stamp Act of 1797 was the first federal estate tax in the United States and was passed to help fund an undeclared war with France; it was repealed in 1802. The Revenue Act of 1862 reinstated the estate tax in order to fund the Civil War; it was abolished in 1870. To finance the Spanish American War, the War Revenue Act of 1898 was passed, and subsequently abolished in 1902. Due to the costs of World War I, the Revenue Act of 1917 reinstated an estate tax that, in some form or other, has been in effect ever since. The new tax plan aims to abolish the estate tax in 2010.

Exemptions Rise Important in Estate Planning

In the meantime, the applicable exclusion amount (the portion of an estate that is exempt from federal estate taxes) will more than triple — rising from the current $1 million level to $1.5 million in 2004, and gradually reaching $3.5 million in 2009. In addition, the top estate tax rate will fall gradually from the current 50% rate to 49% in 2003, until it gradually falls to 45% in 2007.

Testimonial Image
We wanted to establish a bit of extra income. There was a good recommendation about ImmediateAnnuities.com on CNN. We also liked that we could see excellent reviews about them on Google. They were very thorough from our first inquiry to when we decided to buy our annuity from Mass Mutual. They always answered our questions promptly and followed up with the insurance company, too. We have been receiving our monthly payments since last November and couldn’t be happier. What more can we say?
Keith and Samantha Isley
Read 650+ verified reviews

The history of estate taxes in America has been a long and winding road. Careful estate planning is still one of the most important ways to manage and protect your assets for your heirs.

Under budget rules, the estate tax is repealed for one year — 2010. Unless Congress acts in the upcoming years, the estate tax will be reinstated with pre-2002 rates.

We'd love to hear from you!

Please post your comment or question. It's completely safe – we never publish your email address.

Add a new comment: (Allowed tags: <b><i>)

Comments (0)

There are no comments yet. Do you have any questions?