Posted by: dougdumler | September 2, 2010

Estate tax still in limbo

           Congress allowed the federal estate tax law to expire as of January 1, 2010, for one year.  It now appears that Congress will likewise allow this one year hiatus to expire on December 31, 2010.  This will automatically bring back the prior estate tax law on January 1, 2011.  Under this new (old) law, the exemption from estate taxation will be set at $1 million, instead of the $3.5 million exemption that was in force in 2009.  As a result, more estates will be subject to estate taxation beginning in 2011 than before, and estate tax planning will be more important than ever.  Properly drafted wills and trusts can minimize the effect of  the return of the federal estate tax.  I’ll provide more information in future blogs.

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