It's the end of September and the Congress still has not acted on the estate tax.  Concentrating all their time on the health care issue, it seems that  Congress would like to put this issue off a little longer.  The trouble is that they have to do something and fast.
 
You see, at this time, in 2009, in general, a person with less than $3.5 million is exempt from estate taxes at death.  Next year, however, as part of a compromise going back to 2001, the estate tax will disappear.  Republicans would like that but not what will happen in 2011 when the exemption goes back to only $1 million which the Democrats would like.  Hence, the problem.
 
The pundits think there will be an extention of the $3.5 million temporaily until Congress can hash it out.  This is likely going to be an interesting and spirited debate.  However, it looks like we won't get to see it for a  little while yet.
 
Meanwhile, we estate planners sit patiently and wait for Congress to do something so we can help our client plan.  I guess we're going to have to wait for the last minute.  Stay tuned.
 
For more information, click here to read the Wall Street Journal Article. 

 

Sincerely,
 
Alice Reiter Feld
Law Offices of Alice Reiter Feld