Estate Tax Future Continues to Hang in Suspense

The uncertain future of the estate tax continues to be a concern for many individuals.

Here is a summary of this year’s developments in this area from Robert L. Moshman, Estate Tax, Yadda Yadda…, Est. Analyst (Dec. 2007):

There were estate tax proposals this year, but it was apparent they weren’t going anywhere. There was a measure introduced by Senator Jon Kyl (R-Ariz.) to keep the estate tax with a $5-million exemption and a top rate of 35%, but it lost by a vote of 48 to 51 in March.***

The highlight of the year came recently when a distinguished panel that included Warren Buffet and Conrad Teitell addressed the Senate Finance Committee about the estate tax. Buffet opposes repealing the estate tax and advocates the use of estate tax revenues to help low-income households. Teitell warns that people deferring planning while waiting for Congress to act are placing their estates at risk.***

The next major shift in the law is the increase in the estate tax exemption to $3.5 million in 2009. Perhaps that is the new deadline for change.