Monday, December 3, 2012
As I have previously discussed, there is much uncertainty about the estate tax and the fiscal cliff, which is making several groups of people worried about the state of our country and their finances. I have also discussed the proposed offers that both political parties have given each other on how they would handle the estate tax. On Thursday, November, 29, 2012, Timothy Geithner, the Secretary of the Treasury, gave President Obama's initial offer to the Republicans in the house. Well, the news has not changed. President Obama's offer is the same that I reported on in my previous post. He has offered to lower the estate tax exemption from $5.12 million to $3.5 million. In addition, President Obama would also like to increase the estate tax rate from 35% to 45%.
Some claim that even if everything goes smoothly and this is only the beginning of the talks, we will probably not have a plan for another few weeks. Much of it relies on whether House Speaker John Boehner and the Republicans will offer a plan of their own. Stagnation in Congress is a problem for everyone looking to plan their estates for the estate tax. The problem is that this stagnation creates uncertainty, which means that estate planners cannot properly advice their clients because they simply do not know what will happen.
See Arthur D. Postal, Obama's First Offer On Estate Tax, LifeHealthPro, Nov. 30, 2012.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.