With less than three months to address the federal estate tax law, Congress has many proposals to consider before the federal estate tax temporarily expires in 2010, allowing anyone who passes away in 2010 to have an unlimited estate tax exemption. This expiration in 2010, and the subsequent reversion of the $1 million federal estate tax exemption and maximum tax rate of 55% in 2011, are one of the top tax issues currently being considered by Congress.
There are many different options being considered to modify the current law, many of which remove the 2010 expiration and set a specific federal estate tax exemption that will be indexed for inflation. No consensus has been reached by Congress with regard to this issue; however it is clear that the current administration is seeking a permanent change to the federal estate tax law that will fit into their budget plans going forward.
Changes in federal estate tax law is nearly certain, however the exact changes will be made are still up for debate. If you would like to discuss more details about your estate plan and what steps you should consider before new legislation becomes effective, please call our offices and ask to speak to one of our shareholders or email us at info@taxwarriors.com.