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<title>Welcome to Security Financial Group! - Estate Taxes</title>
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<p ALIGN="center"><img SRC="estate_title.jpg" ALT="estate_title.jpg (6602 bytes)"
WIDTH="360" HEIGHT="28"><font COLOR="#FFFFFF">__.___</font></p>
<p><font FACE="Times New Roman" SIZE="3" COLOR="#804040"><b>The Basic Rules of Estate Tax</b></font></p>
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<td><font FACE="Arial" COLOR="#804040"><small>The goal of estate taxes is to try to pay
the minimum taxes by the use of deductions, exemptions, and credits. The first rule is
that an unlimited amount of assets can be passed to a surviving spouse without one dime of
death tax being paid. This is known as the unlimited marital deduction.&nbsp; The second
rule is that one can pass assets to one's heirs, tax free, in an amount equal to what is
called the Federal Estate Tax.&nbsp; An excellent benefit of a Living Trust is that
married couples can take advantage of a loophole in the law and double their federal
estate tax equivalent exemption.&nbsp; This term refers to the total net assets that can
be transferred to named heirs whereby no estate taxes will be due.&nbsp; The equivalent
exemption&nbsp; is scheduled to go up in stages between year 1998 and year 2006 until it
reaches $1,000,000. The equivalent exemption for each year is listed below.</small></font></td>
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<td WIDTH="50%" ALIGN="CENTER"><b><font FACE="Arial" COLOR="#804040" SIZE="-1">Year</font></b></td>
<td ALIGN="CENTER"><font FACE="Arial" COLOR="#804040" SIZE="-1"><b>EstateTax<br>
Equivalent Exemption</b></font></td>
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<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">1997</font></td>
<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">$600,000</font></td>
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<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">1998</font></td>
<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">$625,000</font></td>
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<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">1999</font></td>
<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">$650,000</font></td>
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<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">2000</font></td>
<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">$675,000</font></td>
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<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">2001</font></td>
<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">$675,000</font></td>
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<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">2002</font></td>
<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">$700,000</font></td>
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<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">2003</font></td>
<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">$700,000</font></td>
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<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">2004</font></td>
<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">$850,000</font></td>
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<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">2005</font></td>
<td WIDTH="50%" ALIGN="center" BGCOLOR="#E7C683"><font FACE="Arial" COLOR="#804040"
SIZE="-1">$950,000</font></td>
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<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">2006</font></td>
<td WIDTH="50%" ALIGN="center"><font FACE="Arial" COLOR="#804040" SIZE="-1">$1,000,000</font></td>
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<td width="90%" align="left"><small><small><strong><font FACE="Arial" COLOR="#804040">BASE
ON THE CHART ABOVE IF YOU HAVE AN ESTATE OVER 650,000 EVERY DOLLAR OVER THAT AMOUNT WILL
BE TAXED AT A RATE OF 35% AND GOING AS HIGH AS 55% OR MORE ON LARGE ESTATE. TO QUOTE A
FAMOUS T.V. FINANCIAL&nbsp; PLANNING EXPERT</font><font FACE="Arial" color="#FFFFFF">&quot;</font><font
FACE="Arial" COLOR="#804040">&quot;YOU ARE CRAZY IF YOU DON'T HAVE A LIVING TRUST IN
CALIFORNIA&quot;.</font></strong></small></small></td>
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