Sunday, April 11, 2010

Estate Tax Update

The American Society ofChartered Life Underrighters has published an interesting update on this topic of considerable interest to some of our clients:

 Several factors continue to shape the outcome of the estate tax. Among these factors are: (1) a packed congressional schedule, (2) a focus on deficit reduction, and (3) the upcoming mid-term elections. These factors, in addition to the unanswered question of how Congress will address the expiring 2001 and 2003 tax cuts, and whether reconciliation instructions will be written into the budget process for a tax bill, have continued to delay the decision on the estate tax. AALU has visited with 34 Senate offices over the last five weeks and this bill presents an analysis of the current environment. At this juncture, the House and Administration support $3.5 million exemption and 45% top rate. However, uncertainty remains in the Senate, where neither those who advocate for permanent reform at $3.5 million exemption and a 45% rate, nor those who advocate for reform at a $5 million exemption and 35% rate currently have the 60 votes needed for passage.

To view the entire report, click on this link:

http://images.magnetmail.net/images/clients/AALU/attach/10_37.pdf

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