** 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.
Call Donna or Denise at 610-933-8069 for a telephone or in person
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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.