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?
- 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