Federal Estate Tax - Worst Case Scenario More Likely
Based on inside sources in the U.S. Senate, here's a prediction about what will happen with the estate tax. Since health care reform has consumed Congress and the Obama administration (except for drinking beer with professors and policemen), there will likely be no action on the estate tax until late December. At that time, with a cash-hungry government facing a year with no estate tax whatsoever, Congress will institute a one-year patch extending the current $3.5 million exemption through 2010. Then, in 2011, the exemption will drop to $1 million (with no action from Congress necessary). This, in addition to the coming increases in income taxes, will help pay for health care reform and all the other hemorrhaging of taxpayers' money. Bad for taxpayers, but a boon for tax planning professionals. We'll see...
thanks for all your posts . i enjoy reading your comments . is it possible to share what "inside sources" were used for this post. was it a news article or some other communication to arrive at this opinion. Thank you michael.
RESPONSE: It was from an attorney who spoke to a Senate staff member, as reported at the WealthCounsel, LLC national meeting last week.
Thanks for posting this prediction, it certainly sounds like a reasonable expectation. Although I can't believe that the teachers, nurses and small business owners who own life insurance to protect their families, save prudently for retirement and live in the same homes which appreciate for 30 years are the so-called 'rich', it looks like they'll be the ones footing the bill for national healthcare for the 40% of Americans who pay zero or less in income taxes.
RESPONSE: I don't disagree, but with proper planning, the persons you refer to can avoid paying estate taxes. even if the exemption is only $1 million. The key is to use a qualified estate planning attorney.
Hello,Greg:
Your comment is, in my opinion, right on the money. I've been telling my clients this for some time now. The government is on a shopping spree with our credit cards.
I enjoyed speaking with you a few months ago.
Jeff Crown
Trustlawyer, LLC
Rocky Hill, CT