Thursday, December 3, 2009

House Votes on Federal Estate Tax Bill

The House of Representatives today passed a version of the bill that originally was introduced as HR 4154.  The bill that was passed repeals the one-year estate tax repeal that would have taken effect on January 1, 2010 and substitutes a permanent extension of the current federal estate tax.  It freezes the exemption at its 2009 level -  $3,500,000 (without providing for indexing the exemption for inflation) - and also caps the tax rate at 45% for estates larger than $3,500,000. Not much that is surprising here, but no really bad news, either.  Of course, the Senate has not acted yet. 

I'm working from a summary.  I'll post more details as soon as I can find them.  


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Can an irrevocable trust be modified by the suvivor if it was set-up to eliminate fed estate tax on 1m which will increase to 3.5m?

Posted by: Jon | Dec 12, 2009 6:39:48 PM

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