I can recall when I started my solo estate planning law practice in 2004, the thought was that Congress would soon address the impending 2010 repeal of Federal Estate Tax law. Practitioners and their clients needed clarity to plan. Would there continue to be a federal estate tax and at what levels would it apply?
Well, it is 2010 and Congress did not enact an extension of the estate tax before December 31, 2009. Accordingly, there is now a one-year repeal of the estate tax for 2010, subject to future Congressional action that might reinstate the tax at any time which makes advice and planning a guessing game.
It's very important to be aware that this repeal is temporary; the entire law "sunsets" (expires) after December 31, 2010. This means that the tax structure as it existed in 2001 will take effect again. Therefore, in 2011, Federal estate tax will be assessed on property valued in excess of $1 million with a maximum tax rate of 55%.
Very few people have estates large enough to be affected by the rules recently repealed but many more will be affected if it reverts back to the 2001 standard. Leave your comments here or contact us at http://www.ythlaw.com/
Well, it is 2010 and Congress did not enact an extension of the estate tax before December 31, 2009. Accordingly, there is now a one-year repeal of the estate tax for 2010, subject to future Congressional action that might reinstate the tax at any time which makes advice and planning a guessing game.
It's very important to be aware that this repeal is temporary; the entire law "sunsets" (expires) after December 31, 2010. This means that the tax structure as it existed in 2001 will take effect again. Therefore, in 2011, Federal estate tax will be assessed on property valued in excess of $1 million with a maximum tax rate of 55%.
Very few people have estates large enough to be affected by the rules recently repealed but many more will be affected if it reverts back to the 2001 standard. Leave your comments here or contact us at http://www.ythlaw.com/
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