Changes for the Estate Tax Exemption?
While the estate tax exemption for 2010 is unlimited, the law is set to sunset December 31, 2010, reinstating the 2001 exemption rate of $1 million on January 1, 2011. Estate and financial planners have wondered since the current law was enacted in 2001 what would happen to the exemption and whether Congress would permit it to be reinstated at the 2001 rates in 2011.
On April 22, 2010, the Senate Budget Committee passed the Democratic budget plan for fiscal year 2011, in which the estate tax is to be extended based on the 2009 exemption of $3.5 million per person for 2010 and 2011.