2010 is the year for Throwing Momma from the Train. In 2009 the estate tax exemption is $3.5 million. In 2011 the estate tax exemption goes way down to $1 million. In between? In 2010 there is no estate tax at all.
Obviously, something has to be done.
The Urban-Brookings Tax Policy Center has published a report entitled Back from the Grave: Revenue and Distributional Effects of Reforming the Federal Estate Tax. (Blogging credit to North Carolina Estate Planning Blog.)
An outline of the presidential candidates’ and other recent proposals for reform is contained in Table 11 on page 20.
Obama’s proposal is an exemption of $3.5 million and a 45% rate.
McCain’s proposal is an exemption of $5 million and a 15% rate.
Last March Wealth-Counsel, LLC began a contest. They announced they would give $10,000 to the first estate planning attorney who submits the most accurate prediction that is closest to the actual result enacted by Congress and signed into law. What did I predict? $3.5 million and 45%. Wonder if I was first?