|Forget 2011 Estate Tax: What Happens In 2013?|
|Monday, December 20, 2010 02:49|
Congress finally settled on an estate tax rate for 2011, but financial advisors need to look beyond next year to 2013, when rates are once again set to jump.
In his New York Times column on wealth strategies for high-net-worth people, Paul Sullivan takes a look at some short-term implications of last week’s bipartisan tax compromise and also warns advisors about some long-term factors that have received less attention.
Little mentioned in all of the congratulatory media coverage has been the fact that unless Congress acts again, in 2013 the estate tax will revert to 2001 levels – a 55% tax rate on estates worth more than $1 million. That means that in 2012 we may live through the same uncertainty we saw this year.
Will legislators let the rates soar back upward or will they apply the brakes again? How did you cope with the uncertainty this year, and will you be able to do the same in 2012?