Estate Taxes Change with New White House Administration
With each new administration in the White House and new Congress there are new tax laws and changed agendas. In 1937 whenAmerica’s first billionaire John D. Rockefeller died, the estate tax was 70%! Estate taxes have fluctuated over the years but have decreased over the last decade or so.
Extending the Bush Tax Cuts
When the “Bush Tax Cuts” were set to expire at the end of 2009, the Democrats and Republicans could not come up with an agreement and allowed the estate tax to expire in 2010. By the end of 2010,Washingtonpatched together a “compromise” which gave us the current estate and gift tax exemption of $5 million for individuals and $10 million for married couples. The tax rate for amounts over the exemption is 35 percent.
The current law which was signed in 2010 expires on December 31, 2012! If nothing is done then the exemption amount drops to $1 million per person or $ 2 million per married couple. Once again we will be waiting onWashington to renew or change the tax laws at the end of 2012.
Getting Legal Help
No one knows what the future will hold for estate and gift taxes but working with an experienced estate planning attorney can help you create a flexible estate plan which makes the most of your assets. Experienced Estate Planning Attorney Elga Goodman knows the current tax laws and can help you understand the consequences of your estate planning decisions on your loved ones. Contact us today at 973-841-5111.