Wealth Preservation, Trusts and Estates

David M. Frees III on The Federal Estate Tax Changes

** Attorneys Practicing in Probate, Trusts, Estate Planning Asset Protection Planning and Elder Law

More Important News On The Federal Estate Tax

There has been a flurry of activity in the House on recent Federal Estate Tax bills as the end of the year draws near and as the lapse of the existing Federal Estate Tax looks more and more like a real possibility. However, Representative Pomeroy has introduced a Federal Estate Tax bill HB 4154 that may be the subject of a vote as early as Tuesday, December 2, 2009.

In summary, this bill will make the exemption of 3.5 million dollars permanent and would not allow for carry over of the spouses exemption. This means that careful planning will still be be necessary for married couples for the foreseeable future and it will mean tax for many families (at a forty-five percent rate (45%).

This bill appears to be less favorable than the bill we discussed last week HB 3905. As you may recall from our blog post, HB 3905 would raise the exemption amount, reduce the tax rate, and increase the exemption through time to five million and then index it for inflation.

In any case, we are actively watching both bills and will keep you posted as they may have an effect on your estate planning.

David M. Frees III, Esquire

Call Donna or Denise at 610-933-8069 for a telephone or in person
consultation for estate planning, asset protection planning, trusts,
wills, or estate matters. Elder law consults are also available if you
or a loved one is facing nursing home issues within the next five years.

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Because the estate’s entire tax liability is generally due to be paid to the IRS and the Pennsylvania Department of Revenue within 9 months of a person’s death, executors can find themselves without sufficient liquidity to pay for such inheritance taxes and estate taxes.

David M. Frees III on Paying For Estate and Inheritance Taxes

These taxes are also often due just when the executor is paying for lifetime tax liabilities, funeral expenses and various administrative expenses.

How do you plan for such tax payments to avoid interest and penalties?

I recently did two articles covering these issues.

To read more about paying for federal estate taxes and Pennsylvania inheritances taxes, click these links:

Paying Inheritance and Estate Taxes Part One

Paying For Inheritance and Estate Taxes Part Two

David M. Frees III, Esquire
610-933-8069
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David M. Frees III

David Frees Chairs the Trust, Estate, and Wealth Preservation Section of
Unruh, Turner, Burke and Frees

His practice focuses on estate planning, wills, trusts, asset protection,
and in representing the owners of family businesses, and the directors and officers
of public and privately held corporations.

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