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The lack of an estate tax in 2010 has resulted in a number of issues for estate planners, and has allowed at least one massive estate to pass without being subject to the estate tax. According to a recent article, however, at least two legislators are working on a new estate tax plan.
Revived at a lower rate?
The two Democratic senators pushing the new plan are alleging the estate tax would be revived, but would cap at a 35% tax rate. Under the bill, the per-person exemption would rise to $ 5 million.
In 2009, when the estate tax was active, the top tax rate was 45% and the personal exemption was $3.5 million.
If new legislation is not passed, the estate tax will revive next year at a 55% top rate.
It seems likely some form will pass
Going from no estate tax to 55% estate tax will make an enormous difference on large estates. If you have any questions about your estate plan, be sure to contact a local estate planning attorney.
Randall Ryder practices consumer rights law in Minnesota and is a publisher of Elder Parent Help.