No Federal Estate Tax Answers forthcoming this Summer. By: Douglas L. Kaune, Esq.
Congress is entering its August recess and there has been no progress made on the topic of Estate
Douglas L. Kaune
Tax Reform. Analysts are clearly thinking that the Estate Tax issue will not be addressed until the Fall or later. Interestingly, everyone, including members of Congress, attorneys and financial advisers, agrees that it is unfair to the American tax payer to be without a solid tax law upon which to base their estate planning. Despite this universal recognition, the lawmakers are not rushing to reach a resolution. This Investment News article is helpful in outlining the Congressional time line leading to the end of the year.
Contact Douglas L. Kaune at 610-933 8069 or dkaune@utbf.com to review your estate plan in light of the changing federal estate tax landscape.
Doug is a Partner with Unruh, Turner, Burke & Frees, P.C. which is a full service law firm with offices located in Malvern, Phoenixville and West Chester and also serving Philadelphia and other towns in Chester County, Montgomery County, Delaware County, Bucks County, Berks County, Philadelphia County Pennsylvania (PA).
Federal Estate Tax Reform and Certainty Is Needed
by: David M. Frees III, Esquire
Congress failed, at the end of the year to enact any estate tax reform. As a result, the tax was eliminated for a one year period. This might seem like a blessing, but currently, many people’s documents no longer function as they were intended to work. To add insult to injury, in just a few more months it is scheduled to return with a vengeance.
On January 1, 2011, absent congressional action, the tax will return and American tax payers will only be able to shelter one million dollars. A couple could, with careful planning, shelter up to two million dollars but that would require the use of trusts prepared during the lifetime of each spouse. And, as if that is not bad enough, the tax rate is going up to a maximum rate of 55%.
However, since this tax includes retirement accounts, the value of a house and business, and life insurance proceeds, the one million dollars may not go as far as it might otherwise.
We need and deserve clarity on this issue.
Yet, just a few weeks ago, negotiations between Republicans and Democrats broke down and Estate Tax reform disappeared from the legislative agenda.
This is not a political or partisan column. And, for my money, both parties have failed to deal effectively with this issue. I simply believe that Congress owes certainty and clarity to the American people. Right now, careful and rational estate and tax planning for families with substantial assets is almost impossible.
Clarity is essential and now requires congressional action.
Here is video of a recent statement on the Senate floor.
David M. Frees, III
is an attorney focusing his practice in the areas of trusts, estates, probate, and estate and asset protection planning. His firm, Unruh, Turner, Burke and Frees also offers elder law planning for families facing nursing home care and the related issues.
The firm maintains law offices that serve many local communities including Devon, Wayne, Malvern, Phoenixville and West Chester.
Many articles, websites, blogs and government talking heads have been out in force to reassure tax payers and particularly the owners of family farms and small businesses, that the reforms proposed by the Obama Administration to the death tax will be highly beneficial and pose no dangers to these groups. But see David Frees’recent comment to one of these articles that points out that due to some quite changes in the law, the $3.5 million dollar exemption will not work to protect many families with closely held businesses and real estate.
click the link below and be sure to read the article and Dave frees’ comment to the blog.
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