Federal Estate Tax News

The U.S. Senate continues to kick around ideas for how to deal with the Federal Estate Tax in 2011 and beyond. Right now, there is no estate tax if you die this year, 2010.

The estate tax is scheduled to come back in 2011 at a 55% tax rate for any estate over about $1 million.

Looks like most middle class Americans will not have to worry much about the estate tax under two different proposals in the Senate right now. The first proposal fell apart a month or two ago, and the new proposal likely won't gain much traction.

Therefore, there is still much uncertainty about estate planning. We see many wills, trusts, etc of married couples that have outdated language regarding A-B trusts, credit shelter trusts, and marital deduction planning. Make sure these documents are reviewed now, and in 2011.

 

Here is the link to the latest article:

http://online.wsj.com/article/SB10001424052748704227304575327131250814258.html?mod=googlenews_wsj