Thursday, September 23, 2010
On September 14, 2010, Senate Minority Leader Sen. McConnell (R-KY) introduced S. 3773, Tax Hike Prevention Act of 2010.
Attorney Jeff Marshall summarized this bill in a blog entitled Republican Senate Leader Introduces his Proposal on Estate and Income Taxes - Tax Hike Prevention Act, Marshall Elder & Estate Planning Blog, Sept. 18, 2010. The paragraph summarizing the estate tax provisions is below:
With regard to the federal estate tax S.3773 provides for a 35% estate tax rate; a unified estate/gift exemption amount of $5 million (per individual), indexed for inflation; and a stepped-up basis for inherited assets. For the year 2010, estates would be able to elect to retain the zero rate and carry-over basis of current law (and capital gains tax would apply to the carry-over basis when the asset is sold) or choose the stepped-up basis structure. For the estates of individuals dying after 2010, assets would receive a stepped-up basis and be subject to a 35% tax rate (with a unified estate/gift exemption of $5 million, indexed for inflation).
Senator McConell discusses S. 3773 with Greta Van Susteren in the video below:
See Hani Sarji, On September 14, 2010, Sen. Mitch McConnell introduced S. 3773 - Tax Hike Prevention Act of 2010, Future of the Federal Estate Tax Blog, Sept. 21, 2010.
Special thanks to Hani Sarji (LL.M in Tax candidate at New York Law School) for bringing this to my attention.