Thursday, December 31, 2009
Now might be the best time for grandparents to give away parts of their estates, with the 45% estate tax lapsing soon and Congress’s lack of action. However, Congress may impose a new estate tax that would apply retroactively to cover the gap period. Nonetheless, some may choose to gamble and gift—speculating that no such retroactive tax will occur. But, really, will Congress resist the temptation of an easy tax?