Estate Tax Video Update 12/15/2010

Jack Kingston Says Estate Tax Reform Not Likely This Year

We've been wondering for about 12 months now what's going to happen with the estate tax after the 2010 repeal.  We thought that Congress would extend the 2009 exemption and tax rates before the end of 2009, but to our surprise, Congress did nothing.  Since then, we've been constantly monitoring the situation thinking that something would happen.  Now it's October and still no action.  Last night, I had the good fortune to run into our First District Congressman Jack Kingston and I thought well, now I have the opportunity to ask a Congressman what he thinks will happen, so why not.  I asked Mr. Kingston if he thought we would see any action on the estate tax this year.  He replied "I don't know."  He said that the Senate keeps holding up any reform, and he doesn't see much hope that something will happen this year.  Seems he's as confused by what's happened as the rest of us.  He added that he was in support of a $5 million exemption and a return to the old step up in basis rules.  He further said "If the Republicans are elected, we will take action immediately."  He felt like they could get something done before April.  So, while things are still unclear, and trying to counsel clients on the estate tax remains difficult in light of the uncertainty, if we do return to a Republican majority in November, we should get some clarity relatively quickly.