No news isn’t necessarily good news with respect to the estate tax. It is now August and no action has yet been taken by Congress to provide some guidance as to what a new estate tax law may look like, whether the 2009 estate tax may be reinstated, or if the 2001 estate tax changes by the Bush administration will lapse altogether.
While tax professionals like myself are continuing to hold out hope that changes will be made this year on the estate tax front, there are no clear signs that it will happen. Many members of Congress are seeking reelection and the contested issue will likely be one of many talking points that members of both parties will discuss as election day gets closer. While that may be great for politicians, where does that leave the rest of us?
For starters, with an unpredictable future.
As I have discussed in other blog entries, the estate tax could be repealed or reinstated at 2001 levels, both of which are extremes and rather unlikely. That means that it will probably settle in somewhat close to 2009 levels ($3.5 million personal exemption & 45% top tax rate) with possibly a slightly higher exemption or lower top rate.
No matter where the terms end up, it appears there will be an estate tax for the foreseeable future. That just means one thing, as the end of the year gets closer, it is more and more likely that wealthy, feeble Momma (or Grand-Momma as the case may be) better watch her back!
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