Estate Tax Back on Senate's Radar

Posted on July 20th, 2010 No Comments

According to the Associated Press, “The federal estate tax would be revived, but at a reduced rate, under a plan being pushed by two senators, a Democrat and a Republican.” The senators, Arkansas Democrat Blanche Lincoln and Arizona Republican Jon Kyl, want to reinstate the estate tax, but at a lower rate than the one in 2009.

Their proposed rate is 35 percent, with an exemption for up to $5 million. 2009’s rate was significantly higher with a tax on 45 percent, and an exemption of only $3.5 million.

This rate would not only be a significant break from last year’s but a huge savings from the proposed rate for 2011. Congress was unable to agree on the estate tax, so it expired in 2010. It is set to come back in 2011 at a rate of 55 percent.

The two senators plan to attach their changes to a small business lending bill. The Senate is expected to look at this bill next week.

Estate planning is not to be taken lightly, especially when it affects the livelihoods of your loved ones. If you need help planning your estate, contact an experienced Houston estate planning attorney at Garg & Associates, P.C., by dialing 281-362-2865.

Leave a Reply

firm info  |  practice areas  |  articles  |  faqs  |  blog  |  contact us  |  Site Map  |  resources  |   Find us on Google+   |   Log in

Garg & Associates, PC | 21 Waterway Avenue, Suite 300 | The Woodlands, Texas 77380 Please call 281-362-2865 | Fax: 866-743-4506
Serving The Woodlands, Spring, Houston, Conroe, Kingwood, Tomball, Cypress, Huntsville, Cleveland, Stafford, Montgomery County, Harris County, West Oaks, Memorial, Sugar
Land, River Oaks, Alief, Stafford, Missouri City, and Southwest Houston Texas.