Here are my 2012 estate tax predictions:
- In this presidential election year, no changes will be made to federal estate taxes, gift taxes or generation-skipping transfer taxes.
- The number of states that collect an estate tax or inheritance tax will decrease by at least one. This is in addition to Ohio, which will see its state estate tax disappear in 2013.
- The number of states that will increase their state estate tax or inheritance tax exemption will be at least two. This is in addition to Illinois, where the state estate tax exemption will increase to $4 million in 2013, and Maine, where the state estate tax exemption will increase to $2 million in 2013.
- The number of states without a state estate tax or inheritance tax that implement such a tax will be zero.
It's the first prediction that will make my job as an estate planning attorney the most difficult in 2012 since it will be tricky advising clients how to plan around a moving target.
What about you? What do you think will happen with federal or state estate taxes or state inheritance taxes in 2012 and beyond? Share your opinion: Predictions About the Future of Estate Taxes and Inheritance Taxes.