April 3, 2009
Estate Tax Update
Senate increases inheritance exemption.
The Senate just passed an amendment to lower the estate tax. CT last reported on Obama's budget recommendation to maintain the estate tax at 2009 levels: 45 percent on assets after $3.5 million or $7 million for couples.
The Senate voted to allow exemptions up to $10 million and tax estates at 35 percent above that level.
The question (for those of us not worried about being affected by this) is: Will the new level decrease charitable giving, since it encourages people to hang on to their money?