Estate Planning

Estate Tax Agreement Falls Apart

By Greg Herman-Giddens

TheHill.com reported today that, according to Senate Minority Whip Jon Kyl (R-Ariz.), a deal in the works between Senate Democrats and Republicans on the estate tax has fallen apart.

Senator Kyl said: "We no longer have an agreement because the Democratic side has decided that unless a matter has a guaranteed majority of Democratic votes going in, they're not going to allow it on the floor, at least not voluntarily," he said. "So we have to find a way to get a reasonable permanent estate tax reform to the floor where members can vote on it."

Kyl did not share the details of the proposal, but the article states 'sources have told The Hill that lawmakers were looking to give taxpayers the option of prepaying their estate tax. The levy would be set at 35 percent for those worth more than $3.5 million. However, the exemption would ultimately increase over time to $5 million and wouldn't be indexed for inflation. Prepayment trusts would pay a lower rate.'

So, one day closer to the return of the $1 million exemption and 55% rate on January 1, 2011.

Full post as published by North Carolina Estate Planning Blog on May 18, 2010 (boomark / email).