There Is Some Rumbling From Colleagues In Washington D.C.
The estate tax exemption amount will be increased to $3.5 million and a gift tax exemption at the same levels as 2009. This would be a significant benefit to most Americans who, unknowingly, have an estate tax problem.
In 2013 the estate tax levels are set to reduce to $1 million per person. A young couple, trying to be responsible, who purchase a $1 million dollar term policy on each of them, will subject every other asset they have to a 55% tax at death. Term life insurance death benefits are counted against your personal exemption amount!
A $3.5 million dollar exemption will remove many “average” American families from the punitive 55% estate tax bracket. Hopefully these discussions and rumblings on Capitol Hill actually materialize. More to follow.