Estate Tax Uncertainty Is Prompting Rethinking of Planning Stretegies
The Wall Street Journal last week ran an article discussing the ways in which families and their advisers are trying to cope with the continued uncertainty with regard to the future of the federal estate tax. The article highlighted the continuing uncertainty about what form the estate tax will take in future years, especially with regard to the exemption threshold and the tax rate that will apply to non-exempt estates, and the planning challenges that accompany this uncertainty. As the author of the article suggests, the uncertainty primarily affects those holding assests valued between $1 million and $5 million, since the likelihood is that, whatever Congress ultimately does about the issue (if anything), those with estates worth less than $1 million are not lilely to be subject to the estate tax, and those with estates worth more than $5 million already are, and are not likely to see any permanent relief. As I have discussed here, tax planning is not the only, or even the primary, reason to put an estate plan into place. For those who fall into the $1 to 5 million tax netherworld, flexibility and cdreativity are the order of the day. Check out the article, and consult with your financial and legal advisers.
