IMPORTANT UPDATE ON ESTATE TAX LEGISLATION
Very recently, Sandy Levin (D-Mich.) the Acting Ways and Means Chairman, has announced the Committee is considering a bill which would allow the estates of individuals who pass away in 2010 to have the option of abiding by the law as it is in effect today or to resort to the 2009 estate tax rules.
The repeal of the estate tax on January 1, 2010 replaced a capital gains tax that requires heirs to pay rates of between 15 percent and 28 percent on any inherited assets they sell (subject to several exemptions).
Several groups previously opposed to the estate tax have reversed their position and appear to now back this option. If there is no action taken by Congress, the estate tax law will revert to the 2001 levels, which is considered the worst of all possible options.
We will continue to keep you informed on the progress of this bill.