Estate Planning

No Relief for the Wealthy - Tax Predictions for the Next Decade

By Gregory Herman-Giddens

From the GiftLaw eNewsletter article New Decade Predictions:

"The clear intention of Congress is to start addressing the deficit in 2011 by increasing taxes on upper-income taxpayers. The top brackets are proposed to be returned to 36% and 39.6% in 2011. In addition, the phase-outs known as "PEP" and "Pease" of personal exemptions and a 3% floor on itemized deductions will be restored. Capital gains taxes are likely to be returned to 20%.

The estate tax will also be retained, with a probable top rate of 45%. While the estate exemption is scheduled to return to $1,000,000 in 2011, it is likely to be held at $3.5 million, but could be lowered to the $2 million value that existed from 2006-2008."

Increasing tax rates and a possible lower estate tax exemption should fuel a renewed interest in charitable planning giving, including charitable remainder trusts.

Full post as published by North Carolina Estate Planning Blog on November 16, 2009 (boomark / email).