Lawmakers Eye Estate Tax Repeal Throughout all of last year there was a lot of interest in the estate

planning community about the future of the estate tax. Due to provisions that were contained in the Economic Growth and Tax Relief Reconciliation Act of 2001 the estate tax was repealed throughout 2010, but it was scheduled to return in 2011. If the 2001 tax relief act was allowed to expire the rate of the estate tax would have reverted back to the 2001 level of 55%, and the estate tax exclusion would have returned to the 2002 level of $1 million. This would've been a significant step backward because in 2009 the rate of the tax was 45% and the exclusion amount was $3.5 million. A new tax relief measure was passed through Congress on December 16th and it was signed into law by the president on the following day. It is now being called the Tax Relief, Unemployment Insurance Reauthorization, and Job Creation Act of 2010, and provisions contained within this act increased the estate tax exclusion to $5 million and reduced the rate of the tax to 35%. This framework is in place through the end of the 2012 calendar year. Though the new parameters are an improvement over what could have been, many people feel as though the estate tax should be permanently repealed. In fact, there have been no less than five pieces of legislation introduced into the House of Representatives calling for a repeal. Repeal advocates argue that the estate tax is an instance of double taxation, that it is selectively imposed and that the rate is extreme. With each passing day the 2012 election season draws nearer, and without question the possibility of an estate tax repeal will be part of the debate. This is something to consider if you are planning your estate during these evolving times. Experienced estate planning attorneys Garden City NY of the Law Offices of Saul Kobrick P.C. offers estate planning and business planning resources to residents of Garden City NY. To learn more about these free resources, please visit http://www.kobricklaw.com today.