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Estate Administration and Probate
- Finding Tips On Estate Planning at the Theatre
- Update on the Status of Federal Estate Tax
- Michael Jackson Estate Makes Land Mark Estate Deal With Sony
- The Governator Says Health Reform Will "Beat Up" California
- When a will isn’t enough
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Posted on 3/9/2010 - Let it snow! Pittsburgh Extends Property Tax Deadline...
Posted on 2/9/2010 - Estate Tax, Medicaid, Social Security Changes Ring In New Year...
Posted on 1/13/2010 - Main beneficiary to Michael Jackson’s estate shakes up her probate team...
Posted on 10/22/2009 - Illinois Supreme Court upholds will restricting inheritance based on religion...
Posted on 9/30/2009
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Estate Administration and Probate
- When Pennsylvania Estate Recovery Can Take Place By Law
- Joint Bank Accounts - Risks and Benefits
- Guidelines for Gifts and Joint Accounts
- Intestacy Laws Of Pa: Dangers of Not Having a Current Living Will
- Drafting Wills That Protect Clients' Interests: Every situation is different, which is why we select vehicles that meets each client's needs
News
Will the estate tax repeal go forward in 2010?
Posted on Aug 31, 2009
If Congress doesn’t act, there won’t be any estate tax in 2010 – a situation that concerns some lawmakers and pleases others.
The estate tax would disappear for one year because of tax cuts passed by President George W. Bush that included a repeal of the estate tax – only for 2010. Cynics have noted that a year without any estate tax would induce people to try and time the demise of their wealthy elders for 2010, but the real concern is the revenue that the federal government would lose out on with such a repeal.
Lawmakers must agree on a permanent estate tax rate before the end of the year, which may not happen. In that case they would have to at least agree to a one-year temporary measure to keep the estate tax from disappearing next year.
Another option is to simply extend the 2009 estate tax rate through the end of 2010. This means that estates valued at under $3.5 million would be exempt from the tax, and those over $3.5 million would be subject to a 45 percent tax rate.
One proposal is to extend the ceiling for estate tax exemption from $3.5 million to $5 million, and then tax those over the ceiling at 35 percent instead of 45 percent. A permanent solution may be found if lawmakers can compromise on a tax rate between those two ranges.
After that, Congress must figure out what to do about the estate tax in 2011. Under current law, the estate tax exemption will be only for estates up to $1 million, and anything valued higher than that will face a tax of 55 percent.
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