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.
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.
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