Monday, July 12, 2010

Will Congress Act on the Estate Tax?

Former Treasury Secretary Robert Rubin will join others in urging Congress to reinstate the estate tax before the August recess.  Apparently this event will be held on July 21, 2010 and Rubin is expected to discuss his reasons to support a permanent fix to the estate tax.  See more of this report at The Hill.

In 2009 the estate tax exemption was $3.5 million.  However, due to a quirk in the law that was passed in 2001 the estate tax expired in 2010.  Thus, anyone dying in 2010, even billionaires, will pay no federal estate tax.  However, like Cinderella’s carriage turning back into a pumpkin, on January 1, 2011 the estate tax is set to be reinstated with only a $1 million exemption.  Despite rumors and other information that Congress would fix this issue they have failed to do so.

Again, stay tuned.  I am sure there will be more to this story later.