CONGRESSIONAL ALERT: HOUSE EXTENDS FEDERAL ESTATE TAX FOR 2010
Posted by Thomas J. Bogar on December 4, 2009
Yesterday, by a vote of 225 to 200, the House of Representatives voted to permanently extend the Federal estate tax exemption. Under the current rules, the first $3.5 million of an estate, or $7 million for married couples, is exempt from Federal estate taxes. Net estates over the exemption are subject to 45% tax. However, the bill still needs to pass the Senate. If it does not pass the Senate, the estate tax will lapse for 2010 with no taxes charged against estates of decedents dying in 2010, but then return again in 2011 at 55% rates for estates over $1 million.
Uncertain on the future of the estate tax, clients and their planners are left in a particularly delicate position and will either need to plan accordingly for an evolving tax code, or proactively engage clients, at additional cost, to periodically review and revise estate planning documents each time Congress makes changes.
Stand fast. This is a moving target. I will provide updates as they become available.
