ESTATE TAX UPDATE

Estate Tax is Back Again!

The House and Senate each approved a Fiscal 2010 Budget Resolution which keeps the Federal Estate Tax into 2010. President Bush and Congress set-up Estate Tax Reduction in 2001 with a planned elimination in of the estate tax on January 1, 2010 THE house and Senate passed budget resolutions that conforms with President Obama's goal of re-instituting the Estate Tax. The estate tax exemption amount will be frozen at $3.5 million for single taxpayers and $7 million for married couples – the same rule that applies in 2009 under the Bush legislation. In addition, the Obama Administration has called for indexing the exemption amounts for inflation beginning in 2010. Congress must actually pass legislation to enact the tax changes. May, 2009