Are We Close to Estate Tax Reform?
Recent reports indicate the Senate may be close to an estate tax compromise. The compromise, which needs 60 votes to pass, would set the federal estate tax exemption at $5 million and impose a top tax rate of 35%. If passed it would mean many families will be able to pass their estates free from federal tax. Estate Planning in Washington, however, would still be essential. We still have an estate tax with a $2 million exemption limit, families have businesses and real estate that require planning to effectively pass such assets to the next generation, and many people now find that long term care issues can be a greater threat to leaving a legacy than estate taxes.
