Return of the Estate Tax in 2011 ??? UNLIKELY but read on:
The amount of property that passes free of the Federal Estate Tax will increase from $2,000,000 during 2007 and 2008, to $3,500,000 during 2009, and to an unlimited amount during 2010 when the tax is repealed. The tax then returns in 2011.
The tax not only returns in 2011, it returns to the amount that existed in 2000 to allow "just" $1,000,000 to pass tax free.
The return of the Federal Estate Tax in 2011 is due to a "sunset provision" in EGTRRA, the law that created these changes to the tax.A sunset provision is part of a law that requires the automatic termination of that law on a specific date.
The sunset provision that is a part of EGTRRA was used to avoid the "Byrd Rule."Named for its creator, Sen. Robert Byrd, the Byrd Rule allows the objection of just one U.S. Senator to defeat the passage of any law that will affect revenue for more than ten years.
Although any such objection may be overridden with the support of 3/5 of the Senate, it was not believed that 3/5 of the Senate would support EGTRRA when it was proposed.In order to avoid the Byrd Rule, a sunset provision was included that automatically terminates the law within ten years. By ending within ten years, EGTRRA does not effect revenue for greater than ten years and could not be overridden by just one Senator.
(from the site: http://www.mystatewill.com/)
An Introduction
Hi. Welcome to BourGroup and my blog. Phil
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.
Phil Bour is a CERTIFIED FINANCIAL PLANNER(tm) professional since 2004, a Magna Cum Laude college graduate and an accounting professional for over 35+ years. I love numbers, statistics and economic history.
I am also an Enrolled Agent (EA) to represent taxpayers before the Internal Revenue Service and to prepare tax returns.
"Phil"osophy: I believe that you can manage your money on your own (not necessarily through individual stock selection but through mutual funds, ETF's and other solutions) once you receive some one-time, professional guidance. Why pay annual fees when there may be little added value? For additional information, first read the "An Introduction" label at the left. Then move on to others.