Thursday, December 10, 2009

House Votes to Extend Estate Tax

On December 3, 2009, the House approved the "Permanent Estate Tax Relief for Families, Farmers, and Small Businesses Act of 2009." The bill would make permanent the present-law estate, gift, and generation skipping transfer tax laws in effect for 2009. This would cancel the one-year repeal of the estate tax that is scheduled to begin next month. After 2010, the current law has the estate tax rate reverting to a 55% rate on estates larger than $1 million. The current bill, however, would make the highest estate and gift tax rate 45% and exempt estates smaller than $3.5 million from the estate tax. With basic estate planning, a married couple will be able to exempt $7 million from the estate tax under the new bill.
For additional information, please contact Bethanie Pollock at 616-538-7100 or bpollock@gabridgeco.com.


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