How the fiscal cliff impacts estate taxes

(CBS News) NAPA VALLEY, Calif. - Income taxes won't be the only taxes going up if there's no agreement on the fiscal cliff. Estate taxes -- paid by those who inherit property -- will also jump. We look at how this could affect some families.

Jeff Page owns a 120-acre vineyard in California's Napa Valley. But when his great grandfather started farming here in the late 1800s, this was cattle country.

"Both sides of the family came in before the turn of the century and farmed orchard fruit and cattle," said Page.

What falling off the "fiscal cliff" means for you

But much of the land he grew up on is gone -- sold to pay estate taxes after his grandfather's death.

Page's grandfather died in 1972 when estate taxes were at an all-time high -- 77 percent.

"It was a big tax bill," said Page. "It was half a million dollars. We sold off 150 acres. It gave us something to pay the tax with."

Now Jeff and his wife Mary worry their dream of passing the land on to their two daughters will be ruined by the fiscal cliff. The estate tax rate would rise from 35 percent to 55 percent on estates worth over $1 million. At today's prices in the Napa Valley, the Pages' land could easily be worth $8 million.

Mentioned that he was wealthy, Page answered: "Right. But it's all in the dirt. You know, we're dirt rich, cash poor."

For the Pages more than money is at stake. They want the land that is part of their family's past to also be part of its future.

[mattrick78]

I am not rich by any means, however, I don't understand why the government feels the right to take part of someone's estate any more than they should pay part another's debts if someone dies owing money.

[cbsrusso]

Our founding fathers (The creators of our constitution) believe that wealth should not be concentrated in the hands of a few land barons based on birth rights.

[marychgo]

Multi-millionaires whining and complaining about how dreadful and unfair the U.S. estate tax is do NOT cause my tear ducts to flow.

Any halfway sensible businessperson -- and CERTAINLY any halfway sensible financial adviser -- would have more than enough Life insurance in force, payable to either the estate or the heirs, so that the estate or the heirs would have ready cash to pay whatever estate tax is due. The FACT is that even insureds with health problems CAN qualify for Life insurance; it may cost more than they like but, in the pass-my-business-or-farm-to-my-heirs situation, it's just plain dumb NOT to have it, even if it IS expensive!

[johnlockesghost]

So, in 1977 the 120 acres was worth roughly $ 400,000 and now it may be worth 8 million and we should feel sorry for him? PFUI!

[JJ_in_tulsa]

If you don't know that, check it out. Planned Parenthood was built by her, and her entire purpose was to eliminate the black population. Look at what you kids learn in school by her, and you will find her to be in favor of birth control,, but look future. She was a terrible racist and NO ONE to adore.

[skeezix06]

Why you're just plain wrong.

Margaret Sanger - Wikipedia, since there are no libraries open at this hour of the morning

This quote has been mistakenly used by Angela Davis, to support her claims that Sanger wanted to exterminate black people.[99] However, New York University's Margaret Sanger Papers Project, clarifies that Sanger, in writing that letter, "recognized that elements within the black community might mistakenly associate the Negro Project with racist sterilization campaigns in the Jim Crow South, unless clergy and other community leaders spread the word that the Project had a humanitarian aim."

[john92021]

Ironic that Bush Sr is going to live long enough to get caught up. They probably have a way around any taxes though.

[JJ_in_tulsa]

This comment is just wrong on so many levels. I don't care if you are Rep of
Dem, but at some point, you should be human. I, for one, will respect him as a good President and wish him and his family well. You, are probably part of the problem we face today. You don't have to be human to post, but it helps.

[OnTheCrown]

Highway robbery.

[OnTheCrown]

I do.