Can Democrats and Republicans work together to revamp the Estate Tax?
In July, Jon Kyl, R-Ariz., and Blanche Lincoln, D-Ark., worked together on a proposal to set the estate tax rate at 35% permanently and eventually allow a $5 million exemption. This proposal was similar to the House passed bill that would permanently set the estate tax rate at 45%, with a $3.5 million exemption. It appears the parameters are being set for the estate tax. The proposed estate tax rate appears to be between 35%-45% and the proposed exemption amount is between $3.5 and $5 million.
The estate tax lapsed for the 2010 tax year (read an interesting blog about the 2010 estate tax lapse, Will America’s favorite pastime force lawmakers to fix the estate tax at Las Vegas CPA Blog). In addition, if Congress fails to revamp the estate tax by Dec. 31, the rate will revert to 55%, with a $1 million exemption. However, many people on Capitol Hill tend to agree that legislators won’t let that happen. If the legislators do, it will negatively influence their personal estate tax problems. The estate tax problem is a particular concern to investment advisers and their clients (including the legislators), who are handicapped if they are beneficiaries or are considering changes to their own wills and trusts.
If you are interested in reading more about the estate tax problem, read the Investment News article: Where will the needle land on the estate tax? Please feel free to contact us, your Las Vegas CPAs, for more more information regarding this issue.