Estate Tax Debate | Law Makers Procrastinate

September 18, 2009
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bloomfieldhillsattorneylazyblogpicTrust and Estates attorneys have been following the news on the Federal Estate Tax very closely of late.  The Federal Estate Tax currently taxes 45% of any assets passed at death over the exemption amount of $3.5 Million.  However, come 2010, the exemption amount will be unlimited, then come 2011, the exemption amount will be lowered to just $1 Million.  This seems like still quite a bit, however it will sneak up on many small business owners who may have their long held business liquidated to pay estate taxes if they don't take the proper planning steps.

Most experts thought that law makers would have worked out a deal to extend the $3.5 Million exemption permanently or at least create a permanent solution.  Well, according to thehill.com, it looks like we may be passing a one-year extension of the current rate, and putting off any real discussion until next year.  According to the article, "Senate Finance Committee Chairman Max Baucus (D-Mont.) "recognizes addressing the estate tax is a must-do proposition in the coming months," according to an aide on Baucus's panel. But the committee hasn't scheduled when it would consider new estate tax legislation, the aide said. The panel is busy with the healthcare reform bill, which is likely to occupy the committee until October."   You can read the rest of the article here: Debate over estate tax likely to wait till 2010.

So, stay tuned until next year everyone.

Christopher J. Berry, Esq., A Bloomfield HIlls Trust and Estates Lawyer, is a Partner with The Law Offices of Witzke Berry PLLC, which practices in the areas of Bloomfield Hills Wills and Trusts, Living Wills, and Michigan Medicaid Planning, serving Metro Detroit, including Oakland County, Macomb County, and Wayne County from their office in Bloomfield Hills.  We can be reached at 248-971-1700.