Tuesday, March 13, 2012
$5 million fed estate tax "exemption" would expire at end of 2012 if Congress doesn't act again
It’s important to note that the extension of the “generous” federal estate tax exemption ($5 million) would expire on Dec. 31, 2012, and go back to the 2001 law. So, if Congress does not act, the heirs of someone who passes away on Jan. 1, 2013 would again be subject to the levy of a tax above $1 million on the estate at 55% before distribution can occur. If the estate contained real estate of highly assessed value, it could easily put the estate over $1 million. An heir living in such a home could have to move to pay the taxes.
One would expect a GOP controlled House to act on this matter during 2012. The politics of the GOP primaries and the general election in November could play into the issue in unpredictable ways.