With the phase out of the pick up tax in 2005, state estate taxes have been in flux for the majority of states, and in 2010 sweeping changes were made to the laws governing federal estate taxes, gift taxes and generation-skipping transfer taxes.
But the kicker when it comes to federal taxes is that the sweeping changes that were made in 2010 will last only until December 31, 2012. Beyond that date the laws governing federal estate taxes, gift taxes and generation-skipping transfer taxes are set to revert back to the laws that were in effect in 2001. Coupling this with 2012 being a presidential election year and the growing push to simplify our convoluted Internal Revenue Code makes it highly probable that significant changes will be made to federal taxes (both income and estate taxes) in the coming years. But precisely because 2012 is a presidential election year, any changes to federal tax laws will have to be made during the brief lame-duck session that is upon us, which insures that there will not be enough time to make any drastic or sweeping changes in the short term.
So what do you think? What will happen with federal estate taxes or state estate taxes or inheritance taxes during the lame-duck session and beyond?Share Your Opinion
- Death should not be a taxable event. In a free society, taxpayers should be permitted to spend or save or gift their wealth as they see fit without any concern over further taxation. After paying our income tax, the remainder should truly be ours.
- —Guest Ken
estate tax and state estate tax
- since my childhood i was told to work hard save your money and when you have children try to leave them money to have a better start in life than i did these taxes put our government to shame the people of of the world have every right to call it a death tax
- —Guest john doe
Decision Can't Be Made Fast Enough
- Posted Nov. 13, 2012 - Given that it is mid-November, and it will be too difficult for any new position to get enough votes, I am guessing (and hoping) that Congress will extend the 2012 estate tax rules for one more year. That will give them more time to contemplate, twist arms and debate. Any other move would be hasty and have an overwhelming effect, intolerable as far as I am concerned.
what about farms?
- what would happen if a family was trying to pass down thousands of acres of land to their heirs and millions of dollars in equipment? how can we get around losing 35% of our business?
- —Guest thatonedude
- I vote for mantaining the present level indexed for inflation but remove all RE from the Estate calculation. This will boost the economy through the development of RE.
- —Guest CZ
Estate & Inheritance Taxes
- There should be no such taxes. The earnings have already been taxed. People should be able to leave assets free of taxes and not worry about it. Repealing all such laws would cost less in government costs, estate planners, etc. but benefit the taxpayers.
- —Guest CC
2012 estate tax predictions
- It all depends on which party wins the exec and leg elections doesn't it. I predict, though that the combined idea will stick but the amount will be lowered to 3m/6m
- —Guest Frank Cady
State estate taxes
- States are hurting and need money, so they need to increase taxes on the dead, not the living!
- —Guest Hal