AALU Reports on the Estate Tax Reform

 The Association for Advanced Life Underwriting has published a report entitled Update on Estate Tax Reform: Developments and Dynamics, April1, 2010.

A synopsis of the report is below:

Several factors continue to shape the outcome of the estate tax. Among these factors are: (1) a packed congressional schedule, (2) a focus on deficit reduction, and (3) the upcoming mid-term elections. These factors, in addition to the unanswered question of how Congress will address the expiring 2001 and 2003 tax cuts, and whether reconciliation instructions will be written into the budget process for a tax bill, have continued to delay the decision on the estate tax. AALU has visited with 34 Senate offices over the last five weeks and this bill presents an analysis of the current environment. At this juncture, the House and Administration support $3.5 million exemption and 45% top rate. However, uncertainty remains in the Senate, where neither those who advocate for permanent reform at $3.5 million exemption and a 45% rate, nor those who advocate for reform at a $5 million exemption and 35% rate currently have the 60 votes needed for passage.

For a more in-depth analysis of the report, see Hani Sarji, AALU: “Update on Estate Tax Reform: Developments and Dynamics”, Future of the Federal Estate Tax, April 7, 2010.

Special thanks to Hani Sarji (LL.M in Tax candidate at New York Law School) for bringing this to my attention.