Estate Tax and Legislative Update

In this 2011 FOX Fall Forum session, the president and CEO of the Policy and Taxation Group discusses the latest legislative developments as well as the group’s ongoing lobbying efforts on behalf of wealth owners. 

• In the 2010 Tax Act, wealth owners won significant estate tax relief for two years with a 35% estate tax rate, a $5 million exemption indexed for inflation, reunification, spousal portability, executor election for 2010 decedents, and preservation of valuation discounts, GRATs, and state estate tax deductibility. 
• The short-term goal of lobbying efforts is to secure the 35% tax rate and $5 million exemption in 2012. This will mean coordination between Republicans and Democrats who fall on both ends of the spectrum; there are incentives on both sides to reach an agreement on this issue. 
• The longer-term goal is to achieve comprehensive tax reform in 2013. There is agreement from both Democrats and Republicans that the current tax code is strangling growth, but the parties diverge on who should pay more and who should pay less going forward.