John Dedon recently published a new article called Congress delivers an estate-planning present to business owners on Virginia Business.
When the president signed into law a two-year extension of the Bush Tax cuts, most Americans were focused on the income tax ramifications. As late as Thanksgiving, experts believed Congress was considering a 45 percent or 55 percent estate-tax rate for assets exceeding $3.5 million or $1 million. The law also addressed the uncertainty pertaining to taxpayers who die in 2010. The decedent's estate may elect the $5 million exemption amount, or benefit from no estate tax but also no step-up in basis for assets exceeding $1.3 million (and an additional $3 million increase in basis to property that goes to the decedent's spouse).
When the president signed into law a two-year extension of the Bush Tax cuts, most Americans were focused on the income tax ramifications. As late as Thanksgiving, experts believed Congress was considering a 45 percent or 55 percent estate-tax rate for assets exceeding $3.5 million or $1 million. The law also addressed the uncertainty pertaining to taxpayers who die in 2010. The decedent's estate may elect the $5 million exemption amount, or benefit from no estate tax but also no step-up in basis for assets exceeding $1.3 million (and an additional $3 million increase in basis to property that goes to the decedent's spouse).
Click here to read the entire article.
Posted by Yi Song, Associate Editor, Wealth Strategies Journal.
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