Fox News has a recent post about the debate that is currently taking place regarding the estate tax. As I and many other have stated before, the estate tax for 2010 has been eliminated. The future of the estate tax however is in question. Many on the Democratic side in Congress want to push the tax to as high as 55% while President Obama is looking for a tax of 45%.
The current state of confusion regarding the estate tax is clearly troublesome from a planning perspective. It is simply impossible to plan for taxes when one does not know the amount of taxes that will likely be paid. The problems associated with this planning issue are obviously greater for those businesses with a large capital investment that has accumulated over years and is owned by a limited number of people. The family farm is a great example of the types of businesses that suffer an impact from an estate tax because much of the family’s wealth may be tied up in equipment, land and physical assets that may need to be sold to pay off the amount due.
If you are interested in a review of our situation feel free to contact our office. For more information regarding our estate planning services, follow this link.