President Obama's campaign proposal was to freeze the 2009 Federal Estate Tax at $3.5 million exemption. Meaning, anything less then $3.5 million could be passed Federal Estate Tax Free. Many estate planning lawyers were wondering whether, with the state of the economy, he would push to maintain the $3.5 million exemption or lower it.Well, with the release of his budget proposal, President Obama may be tipping his hand, that yes, he is indeed still planning to still freeze the Federal Estate Exemption at the 2009 levels. In Footnote 1 of table S-5, there is a line that states "In continueing the 2001 and 2003 tax cuts, the estate tax is maintained at its 2009 parameters." Also, at several other passages, the proposal hints at the 2009 exemptions, notably in footnote on pg 121 and the projections on 117 and 119.
Granted, this is not a tax bill yet, but it does give us Michigan estate planning lawyers a heads up that President Obama is still maintaining his campaign promise of freezing the 2009 Federal Estate Tax exemption amount.
You can read the proposal here.
Much thanks to the ABA Estate Planner's and Administrator's Discussion listserve.
-Christopher J. Berry, Esq.
Michigan Estate Planning Attorney
