Tuesday, November 09, 2010

Estate Tax...what happens next

Well here we are at the end of 2010.  Those of you that have been following the developments of the Federal Estate Tax over the last few years know the "repeal" of the Estate tax is slated to end on January 1, 2011.  The Estate Tax will then revert to where it would have been had the law never been changed.  This means that every estate in excess of $1,000,000 is at risk.  The tax rate will go as high as 55%..

The elections of a few weeks ago will have an impact; it just remains to be seen what that impact will be.  Some believe that the lame duck Congress controlled by the Democrats will push through some form of "compromise" extension of the "Bush Tax Cuts" and that compromise will involve allowing the Estate Tax to return.  Others are of the belief that the new Congress with  the Republican-controlled House of Representatives will act and that the Estate Tax may stay repealed.

Either way, we should have an answer soon.  Stay tuned.