Only 2% of all Estates are Subject to Estate Taxes

Estate taxes. Something that many of us worry about. It can be reduced or eliminated with some advance planning, charitable giving and proper structuring of your estate plan.

So, you do all the work to avoid it. Terrific.

But did you know that only 2% of all estates are subject to estate taxes?

True, it's straight from the horse's mouth.... irs.gov says: "(Only about 2% of all estates are subject to the estate tax)." This statistic is only worth a parenthetical apparently. Read it here after the Introduction paragraph midway down the page. I've remembered this from years ago and was able to google it immediately. The percentage hasn't changed from when I first learned about it.

Does this mean that most Americans have done enough advance planning, charitable giving and proper structuring of their estate plan to avoid estate taxes? Or does it mean that most Americans just do not amass enough wealth to pass on to their heirs? The latter gets my vote.

What do you think?

Read this article "Richest Are Leaving Even the Rich Far Behind" by David Cay Johnson, New York Times, June 5, 2005, for some numbers to crunch.

I am writing about this in response to the first comment to my post on April 3 about gift taxes. Have another thought? Please post a comment.