In 2008, "excessive wealth" starts at $2.0 million. So if the value of your taxable estate (gross estate minus certain deductions) is under $2.0 million and you die in 2008, there will be no federal estate tax due on your estate. In 2009 the threshold is raised to $3.5 million. In 2010, it drops to $0 (yes, that's right, under current tax law every single dollar of value in your estate will be taxed. That is, in 2010 there is no estate tax exemption amount at all). In 2011 and beyond, then, the exemption amount returns to $1,000,000. Truth is once again stranger than fiction. Congress is expected to re-visit current law in the coming years.

How much is the estate tax? The IRS levies, upon your death, an estate tax on every dollar in value that your estate exceeds (at the time of your death) the exemption threshold in place for the year of your death ($2.0 million in 2008). Currently, the estate rate begins at 18 percent. The tax percentage (rate) increases steadily as the value of your estate rises beyond the exemption threshold until it hits 45 percent at the $2 million mark.  In other words, once the value of the taxable portion of your estate hits $2 million (for 2008 that's a total estate value of $4.0 million), the tax rate becomes 45 percent. For every additional dollar in value, you'll have to give 45 cents to the federal government.

Following with the above example, a $4.0 million estate in 2008 (with $2 million over the exemption threshold) would owe a total tax bill of $900,000. The effective tax rate would be 22.5 percent.

In addition to federal estate tax, there can also be a state estate tax. Check with your local advisor for details.

Unlimited Marital Deduction: Under federal tax law and most state tax laws, spouses can make gifts to each other during their life or at death with no tax liability. So, if you wish, all of your assets may pass to your surviving spouse, upon your death, completely free of estate taxes.

Who Can Help You With Your Estate Planning?

The field of estate planning is complex. There are professionals that specialize in assisting business owners and wealthy individuals in estate planning. It is best to use both an experienced tax attorney and a knowledgeable financial planner.

"But that's our only way out!" shouted a shocked lieutenant.

"Yes, burn the bridge," insisted the commander. "Our only option will be to defeat the enemy."

Sometimes, if the job is really tough, the only way to ensure success is by making it the only option.

Assuming ownership of a new business is one of those tough, scary-as-heck jobs.

It's tough for the business buyer. It's also tough for the seller, employees, vendors, customers, et al. Nobody's comfortable with change. In a business purchase-sale transaction, if you don't burn the bridge, retreat will be the more likely result.

One of my favorite quotes is: "The path of least resistance makes crooked rivers and crooked men." Buying a business is not easy. Neither is selling one. An often-discussed and occasionally attempted "path of least resistance" is to "let the buyer work in the business for a while." That way, the buyer can get more comfortable with what he is buying and the seller doesn't have to immediately and abruptly begin life absent the "owner" title. This is a natural "middle ground." But it does not work.

I know, your situation is different. So go ahead. But be prepared to waste a lot of time and energy. Or worse.

Buyers unwilling to take the plunge either don't have the money or don't have the guts. Or they could have other plans altogether. Take the case of Paul Westing. He owned a company, and finally found a buyer - Kelly - who was willing to pay a fair price. He was also a very nice person. Kelly did have money - quite a bit - but darn it if by a strange quirk he could not get his hands on it just yet. His explanation made sense, so it was decided that Kelly would work in the business until his money became available. All the better, it seemed.

Four months into the arrangement, Kelly failed to show up for work. Turns out he had embezzled cash, credit cards and other valuables. Another lesson here: If the buyer is offering more than others, there may be a good reason.

Sellers also get cold feet. Serious buyers (those with both guts and money)

should be aware of this. Ask Danny Gainsburg. He worked out a deal with the owners of a very successful bookstore. Together, they agreed on the path of least resistance. They'd "move slowly" and introduce the buyer over a few years. But the employees became suspicious and, once the plans were announced, resented the subterfuge. And, of course, the employees were not comfortable with a new boss. He was different. The employees undermined the newbie and eventually the buyers buckled under pressure. Mr. Gainsburg wasted two years of his life.

Yes. Maybe your situation will be different. But take it from a guy who has spent years putting buyers and sellers together. The business purchase-sale transaction is one that is tough for all involved. I don't recommend that you first dip in your big toe. Wait until you're good and ready. Then take off all your clothes and dive in.