The ever-shifting tax battles in Washington have left estate planners in a quandary for the past 12 years; and it’s beginning to look as though the angst is to continue at least until November’s election.
As you know, the so-called “Bush Era Tax Cuts” are set to expire on December 31, 2012. Among the devastating consequences if Congress fails to act, the personal estate tax exemption would decrease from the present $5,000,000 to $1,000,000. Anyone with an estate in excess of $1,000,000 who has prepared an estate plan in the past couple of years must take a second look at his or her wills and related documents.
All indications are that our political pals will not permit the personal exemption to fall back to $1,000,000, but with all of the acrimony that is the hallmark of climate in Washington, it cannot be counted out.
— Ken Butera