Legislation Introduced to End Federal Estate Tax

The introduction of legislation in Washington, D.C. does not mean a whole lot, but it is worth noting on IDT for the Middle Class.  While the federal estate tax currently does not kick in until a person dies with a net worth over $5 million (an unlimited amount can be passed to a surviving US spouse), that amount is scheduled to reset to $1 million on January 1, 2013, unless Congress takes action.

Those who oppose any federal estate tax due from the perspective that it creates a burden, and often prevents the next generation from inheriting family farms and businesses.  Remember, the liquid and non-liquid assets are included in the assessment.  So, if the family warm is worth a lot on paper, the tax is owed within 9 months of the decedent's date of death.

I have no idea what will come out of DC.  I do know we'll see more and more proposals.  Only time will tell where the tax will fall.  Keep reading and watching, especially if you own a farm or business.

Image Credit:  www.sxc.hu - free image