Monday, December 03, 2012

Estate Planning Boom Ahead?

The President's proposal to cut the amount exempted from federal estate tax from about $5 million to $3.5 million could double the number of estates exposed to tax. Result, a surge in the number of families needing tax-effecient estate plans.

A few Democrats, including Senate Finance Committee Chairman Max Baucus, favor keeping the higher exemption. Which way do you think Congress will lean?


Jim Gust said...

Congress will jump off the cliff, so the $1 million exemption is on the way.

JLM said...

Well, yes, in theory. Do you really think the new Congress would deny estates of those dying between January 1 and January 19, or whatever, the $3.5-or-$5-million exemption it grants to decedents who manage to live just a little longer?

Jim Gust said...

January 19? You really are an optimist.

I wonder if the forces for estate tax repeal might be rethinking their strategy of nibbling it to death. They might be better served by $1 million exemption that stokes the outrage of far more people, who then might well provide more ammo for outright repeal.