Thursday, April 11, 2013
As I have previously discussed, the President released his proposed budget and several of his proposals might affect the techniques that estate planners use. Now, it appears that the President wants to reinstate the estate tax rate that taxpayers paid in 2009. President Obama hopes that this will increase tax revenue by $79 billion over the next decade. Under the President's proposal, the unified credit would drop to $3.5 million and the tax rate would increase to 45%. This comes at a time when most estate planners probably thought that the discussion about the estate tax had come to an end.
See Dave Boyer, Obama Budget Resurrects The Estate Tax, The Washington Times, Apr. 10, 2013.
Special thanks to Brian Cohan (Attorney at Law, Law Offices of Brian J. Cohan, P.C.) for bringing this article to my attention.