The WSJ has an interesting piece on how Obama's budget plan quietly resurrects it self in 2010. As we've discussed before, the Federal Estate Tax exemption level this year is $3.5 million. Under the current law, that exemption will be unlimited next year. Meaning there is no Federal Estate Tax. So, Bill Gates and his wife could pass next year leaving their billions to whoever they wanted, estate tax free. Then, come 2011, the estate tax is coming back in at $1 million.
Well, we've blogged about before regarding the direction the Federal Estate Taxes are headed. The current thought is that there will be an estate tax freeze, freezing the current exemption of $3.5 million for next year and beyond. This really isn't news, as Obama has been talking about this since he was campaigning.
The WSJ article, which you can read here, says that this is Obama's underhanded way to sneak an added tax responsibility on unsuspecting Americans. My thought is that this has been anything but a secret.
-Christopher J. Berry, Esq.
Michigan Wills, Trusts, and Probate Lawyer
