Estate Tax News from Washington

A new estate tax reform solution has been proposed by Sen. Bernard Sanders, Tom Harkin and Sheldon Whitehouse billed the Responsible Estate Tax Act. According to Steve Leimberg, this newest estate tax proposal is structured as follows: Exempt the first $3.5 million of an estate from federal...

Sen. Bernie Sanders' (I-Vt.) legislation restores estate tax on the wealthiest Americans - S.3533

Bill Tracking Report S 3533 Copyright 2010 LexisNexis Academic & Library Solutions, a division of Reed Elsevier Inc. All Rights Reserved Bill Tracking Report 111th Congress, 2nd Session S 3533 2010 Bill Tracking S. 3533; 111 Bill Tracking S. 3533 BILL TITLE: No...

The Progressive Underpinnings of the Estate Tax

Why is there an estate tax at all? An interesting article in The Nation " The Plutocracy Prevention Act" explores the ideological underpinnings of the enactment of the federal estate tax in 1916. A century ago this summer, Theodore Roosevelt gave his remarkable "New Nationalism"...

Point/Counterpoint - The Estate Tax

Recently, a Wall Street Journal article proffered several points in support of the estate tax. In response, a Forbes.com blog provided several counterpoints. Below is a brief overview of the points and counterpoints. For the Estate Tax: 1. Exemptions and deferred payment rules protect small...

Florida Legislative Changes Impacting Your Estate Plan

The failure of Congress in allowing the federal estate tax exemption to expire in 2010 has created chaos with many client estate plans. While the unlimited estate tax exemption has been a windfall for beneficiaries of wealthy individuals who pass away in 2010, it has also resulted in many marital...

Estate Tax Mindmap - Pros and Cons

The LexisNexis Estate Planning and Elder Law Community continues to provide you with further information regarding the estate tax debate. As part of our ongoing coverage of this issue, we have compiled some of the points in favor of and opposed to the estate tax. Related post: Point/Counterpoint...

Forbes.com Warns of Possible 60 Percent Estate Tax for Certain Estates in 2011

We've all been reading about estate taxes lately. On January 1, 2011, the Bush tax cuts will expire so we'll be back to the pre-2001 system unless Congress gets their act together soon. What your clients might not realize, and what Ashlea Ebeling talks about in her recent Forbes.com blog...

Estate Tax, AMT, etc - Has Washington forgetten about the Other Taxes?

So Dem and GOP appear to all agree to extend this years income tax rates to next year - avoiding a jump in income and capital gains taxes when the ball falls on New Years Eve. This has been greeted with great fanfare in the press and an apparent sigh of relief and an attitude of "well, that's...

Estate Tax Update - A Choice of Tax Law to apply for deaths in 2010

The Wall Street Journal reports that the Senate is sending out legislation to allow estates of people who died in 2010 to choose EITHER the 2010 1022 basis election OR the 2011 estate tax laws, which are currently proposed to be a $5 million exemption per person and 35% estate tax. Legislation...

What Tax Form Should You Use for Deaths in 2010?

While there is no estate tax in 2010, there is still a tax form to be filed with the federal government in relation to the estates of people who died in 2010. As discussed in greater detail here , where a person has died in 2010 their executor has an opportunity to allocate $1.3 million to the basis...

Proposed Estate Tax Legislation Contains some Generous Surprises

The new estate tax legislation proposed by Sen. Reid (D. NV) contains some pleasant surprises for wealthier Individuals. First, as expected, it proposes to raise the estate tax exemption amount to $5 million per person with a maximum 35% estate tax rate for the next 2 years. Additionally, the proposed...

Finally a New Tax Law (For Now)

The long-awaited legislation concerning the estate, gift, and generation-skipping transfer taxes has been passed by both houses of Congress, and signed into law by the President. The legislation is known as the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010. Here is a...

Hirschson and Glasgow on Transfer Tax Planning for New York Couples

The 2010 Tax Act changes the landscape of gift, estate and generation-skipping transfer tax planning, at least until the new law is due to sunset at the end of 2012. For New Yorkers, however, the application of state estate tax law has to be considered along with the federal transfer tax laws. As a result...

Estate Tax Exemption Rate on the Rise in New Jersey

If you follow this blog, you know that New Jersey is the most expensive state to die in . In an effort aimed at changing that distinction, Governor Christie in his budget proposal has recommended increasing the New Jersey Estate Tax Exemption Amount from $675,000 per person to $1 million per person....

Diane L. Mutolo on the Reinstated Estate Tax’s Effect on Basis Rules and Estates of 2010 Decedents

The Tax Relief Unemployment Insurance Reauthorization and Job Creation Act of 2010 reinstated the estate tax and stepped-up basis rules and repealed the modified carryover basis rules for the estates of decedents dying in 2010. In this Emerging Issues Analysis, Diane L. Mutolo discusses the return of...

Ohio Repeals its Estate Tax Beginning on Jan. 1, 2013

The new Ohio budget signed into law on June 30, 2011, repeals Ohio's estate tax , effective January 1, 2013. (The current Ohio estate tax imposes a 6% rate on estates of $338,333, rising to 7% on estates over $500,000.) Twenty-two states (plus the District of Columbia) currently impose an estate...

Bullivant Houser Bailey PC: Oregon Replaces Inheritance Tax with Estate Tax

By Darin Christensen On June 28, Governor Kitzhaber signed a bill that will replace Oregon's inheritance tax with an estate tax. The estate tax is similar to the former inheritance tax, but has several substantial differences and provides some planning opportunities. Overview Oregon's...

Democratic Proposals for Revenue Raising

The proposal from the White House includes: Income surcharge for high income earners - basically a 55 surtax on Adjusted Gross Income in excess of $500,000. Repeal high-income tax cuts in 2012 as opposed to 2013. Grantor Retained Annuity Trusts (GRATs) - minimum 10 year term for these...

The More Things Change, The More They Stay The Same

On January 10 th , PricewaterhouseCoopers hosted a webinar pertaining to potential tax legislation in 2012. The panelists concluded that, despite a number of tax provisions that will expire, a huge deficit, and a continuing clamor for significant tax reform, it is unlikely there will be major...

Columnist in one of New York's Poorest Counties Sees the Estate Tax as a "Major Issue"

Hi Y'all. I'm back. Sorry for the big break in posting. I'll try to do better. In this election year, I haven't heard that much talk about the estate tax - or as the Republicans like to call it, the "Death Tax." As I've written about before, the estate tax is imposed...

Asbury Law Firm: District Court: Estate Tax Marital Deduction Triggers Unconstitutional Ruling on DOMA

In a case that began with a claim for a refund of estate taxes paid, Judge Barbara S. Jones of the Southern District of New York ruled that the Defense of Marriage Act (DOMA) is unconstitutional under the Equal Protection Clause of the 5th Amendment. Edie Windsor and Thea Spyer were a couple for over...

Ask Liza: Probate for U.S. Assets; Estate Tax for Non-Resident Aliens

Dear Liza: My brother and I are dual citizens (Japan and US). We both reside in the US. Our Japanese mother recently passed away. She had some cash/ stock/ annuities/ mutual funds in the US, and some property in Japan that we will inherit jointly, with no disputes. She has a social security number and...

Spouse vs. Charity: Estate Tax Apportionment

By John G. Farinacci, Esq. Ruskin Moscou Faltischek, P.C. We know that estate taxes are to be paid in the manner of a testator's choosing, but if the testator fails to make that choice, then estate taxes are "equitably apportioned among the persons interested in the gross tax estate."...

Ask Liza: Should We Get Married? Estate Planning for Same Sex Couples Now

By Liza Weiman Hanks | Dear Liza: My long term domestic partner of 30 years and I were registered domestic partners for a few years and then she decided she wanted to be totally financially independent of me so we terminated the agreement last year. We are still together as a couple and live five...

Dedon on Estate Planning: The President’s 2015 Budget: Limitations on Crummey Withdrawal Rights

President Obama’s $2.9 trillion budget for the 2015 fiscal year includes several tax increases, particularly on the wealthy, to pay for increased spending without increasing the deficit. One increase that will not be widely reported pertains to "Crummey" power limitations. (I am limiting...