Fate of Federal Estate Tax Goes to Wire

The federal estate tax, often referred to as the “death tax,” would disappear in 2010 if the Senate this month fails to approve a House bill that would essentially extend current rules.

The estate tax measure, approved by the House Thursday, would make permanent the 2009 estate tax exemption level of $3.5 million for an individual — $7 million for a married couple. The maximum tax rate would be 45%, the same as in 2009.

With the Senate seemingly preoccupied with health care reform, it might seem as if members are too busy to act on the estate tax measure by the year’s end deadline.

But don’t count on the tax going away, said Stewart Viets, a Napa, Calif. certified financial planner who works on estate planning issues with privately held trucking companies that seek assistance in “the management of wealth through generations.”

“Most practitioners, estate tax lawyers that I work with, the best crystal ball that we have indicates there is absolutely no chance that there will be a zero estate tax in 2010,” Viets said.

By Eric Miller
Staff Reporter