Estate Tax Repeal Still Up in the Air
Congress has still not taken any action on the estate tax. Currently, for individuals dying in 2010, their estates are not subject to any estate tax. However, for individuals dying in 2011, the estate tax is scheduled to return, taxing everything over $1 million at levels of up to 55 percent!
According to this article from The Hill, some sources say that Democrats are working on a fix that would place a 45 percent tax on estates over $3.5 million. However, Congress recessed until after the election without taking action on the estate tax.
With the upcoming elections possibly returning control of the House and/or the Senate to the Republicans, the future of the estate tax is unclear and it is also unclear when any action on the estate tax will be taken. Which is very frustrating for estate planners!