If you ever wondered why estate planning can be difficult, one reason is the ever-changing estate tax laws. These changes are a result of political in-fighting in Washington and not the result of tax policy. In this brief article, the AICPA describes nicely why a permanent fix to our federal estate tax laws is critical.
AICPA Urges Congress to Speed Up on Permanent Estate Tax Changes | Audit Profession News & Events
Without a permanent, or even semi-permanent estate and gift tax exemption, estate planning, at best, can only be temporary for clients. This forces many clients to opt for solutions that run counter to how they would plan if the exemptions were fixed.
What do you think about this issue? Is this something that you care about. I hope that everyone becomes interested in this due to what happens with your exemptions on January 1, 2013. Unless Congress and the President agree on a fix for this, your estate, gift and generation skipping tax exemptions are reduced on that date to $1,000,000. This is significant since that number is about 460% less than the exemption was back in 1987 when adjusted for inflation.
I look forward to your questions and comments. Thank you.
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