A temporary lapse is causing the estate tax to go away for 2010 and putting a lot of pressure on wealthy families, reports The Wall Street Journal. The tax can erase nearly half of a wealthy person’s estate and affects about 5,500 people a year. The temporary lapse stems from a Congressional action in 2001 that raised estate tax exemptions, capping off with an elimination of the tax in 2010. Because of budge constraints, Congress didn’t make the change permanent and the tax is set to come back in 2011 at a higher rate and lower exemption. The problem is for families facing end-of-life decisions in the immediate future, for whom the timing of a loved one’s death now has serious financial implications. Estate tax experts, including Paul Rabalais, a local attorney, say they are surprised Congress didn’t step in to reinstate the tax for 2010. Read the Journal story here. (Registration required)
Estate tax set to temporarily go away
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