House Takes Action on Estate Tax

In an action which addresses some of the unease and speculation about the federal estate tax, on Friday, December 4, 2009, the U.S. House of Representatives voted to extend the current 2009 law indefinitely.  This prevents the estate tax from being repealed in 2010.  The new law means that in 2010 and beyond there will continue to be a $3,500,000 exemption for each individual from the federal estate tax, with a rate of up to 45%.  The Senate has not yet acted on the matter, but is expected to before the end of the year.  Estate planners keep a sharp eye on these events, since they make a difference in how to craft effective plans for clients. Click here for a helpful Wall Street Journal article on the House bill.