An informal survey posted on ABA's Estate Planner's and Administrator's Discussion blog asked readers to vote for their best guess on possible estate tax legislation in 2010:
"A. None (current law; $1MM exemption, 55-60% rate in 2011).
B. Retroactive 2009 ($3.5MM exemption, 45% rate).
C. Retroactive Other (i.e., $5MM exemption, 35% rate).
D. Effective Date New Legislation."
The majority of those who answered (52%) voted for B, with retroactive legislation that would extend the 2009 exemption amount and tax rate. 39% voted for A (no legislation), 3% voted for D, and 6% voted for none of the above. C received no votes.
The most interesting part about the survey, however, was the commentary about Congress. One B-voter claimed that Congress would enact retroactive legislation "likely before the end of the quarter," but another B-voter felt that "no matter what, nothing happens on this until after the Congressional elections." Other voters opined on the differing agendas of the Republicans and the Democrats.
One common theme running through the comments was disbelief and frustration toward Congress for its inability to enact estate tax legislation before the end of 2009. Many B-voters were hopeful for legislation in 2010 but were also concerned that Congress might again fail to pass anything. Other voters expressed amazement at Congress's "level of incompetence," with one voter writing it was "even greater" than imagined. Many voters had no confidence in their opinions because of Congress's previous inaction.
Faced with such uncertainty as to how to plan and advise clients, Neal Kennedy aptly wrote, "So much for the certainty of death and taxes."
Posted by Jenny Robertson, Associate Editor, Wealth Strategies Journal
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