Estate Planning News

Congressman Aderholt Votes To Eliminate Death And Estate Tax  

WASHINGTON, DC -- Congressman Robert Aderholt (R-Haleyville) today voted in favor of the Permanent Estate Tax Relief Act of 2006.  This legislation, which passed the House by a vote of 269 to 156, helps America’s small-business owners, farmers and ranchers by providing them with a permanent solution to the estate tax.

“Many families work their entire lives to build a farm or a small business.  Following a death, they shouldn’t be forced to pay a second set of taxes on assets for which they’ve already paid taxes on in life,” said Congressman Aderholt.  “This is double taxation and I believe that most people believe it is clearly unfair.”

The estate tax relief provided in the Economic Growth and Tax Relief Reconciliation Act of 2001 is scheduled by law to end in 2010.  Without Congressional action, in 2011 the estate tax exemption will drop to $1 million per person and the maximum estate tax rate will increase to 55 percent.  The Permanent Tax Relief Act of 2006 provides permanent estate and gift tax relief.

Congressman Aderholt continued, “By unifying the estate, gift and generation-skipping transfer taxes, we are giving individuals greater flexibility to make estate planning decisions during life.  Also, by providing a $5 million per person exemption level that is indexed for inflation, we are voting to protect the vast majority of small business owners and American farmers from paying any estate tax, period.”

Many economists have noted that the death tax penalizes savings and makes it more difficult for small business owners and farmers to pass on their life’s work to their families.

H.R. 5638, the Permanent Estate Tax Relief Act of 2006, reunifies the estate, gift, and generation-skipping transfer taxes and increases the estate and gift tax exemption to $5 million per person.  In addition, married couples can carry over any unused part of their spouse’s $5 million exemption.  For estates between $5 million and $25 million, the rate of tax will be the same as the capital gains tax rate.  On estates valued at more than $25 million, the top marginal rate of tax will be double the capital gains tax rate.

Contact our Chicago estate planning attorney now.

	Did You Know?
	A "Family Limited Partnership" can be used to own and manage your property In a similar manner to a Trust, but allowing additional tax planning techniques to be employed. Family Limited Partnerships are typically used for those who have large estates and thus have a need for specialized estate planning in order to minimize federal and state estate/death/inheritance taxes as well as provide elements of asset protection.